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SoftBank vs. Alibaba

Alibaba the chinese trading platform has currently a market cap of USD 396bn.

Softbank has still a 28% stake in Alibaba. Applying market metrics this should be worth USD 110bn.

BUT: Softbank itself  has currently a market cap of USD 87bn. Besides the share in Alibaba they own 80% of Sprint telekom and the third largest mobile network in Japan.

I see a market ineffciency.

What you opinion folks: Short them both, Go long on Softbank or stay away from this Tech crap altogether?

Greets

Namxat

Automate your Excel models with the industry's most accurate financial, market and economic data.

you are missing about $134b in debt,  

I love my cheese. I got to have my cheddar.

Thanks for the input!

I did calculate net USD103bn of this c40m is Sprint debt. Even if you attach no further value to the 80% share in Sprint after debt you end up with: 

Assets: USD110bn in Alibaba, third largest mobile network in Japan (16 EBITDA cUSD3bn), and Yahoo Japan

Debt: USD63bn

I am willing to currently accept a negative strategic premium since I think Masayoshis Son´s shopping spree and Vision Future Funds things will only break even in med term but still I arrive at Softbank being on relative terms undervalued and Alibaba bering on relative terms overvalued.

Greets Namxat