Currently Yahoo's PE ratio is around 7.2, which is very low for the industry and for the S&P. It is at this low level mainly because the company was losing ground. If Yahoo can hold its own in terms of revenue which on the face of its December 2012 results it appears it can, its PE ratio could easily increase to around 10 fairly soon. An increase from 7.2 to 10 in PE ratio means almost a 50% increase in its stock price from its current level.
I read that article this morning and it is right on. Mayer has to boost revs and everything else will fall in place. Yahoo's PE ratio is very low for its industry but that won't last once Yahoo blows away earnings estimates.
Plus, If Yahoo can lower its tax rate down to 25% and increase at the same time its PE ratio to 10 to reflect its ability to hold its own in its industry, even with growth in expenses this year of 6%, the stock will increase to around $39.