With the impending Yahoo sale, it pays to really know how much the company's stock is worth today. Several investors believe that too much uncertainty is surrounding the business.
According to Profit Confidential, Yahoo's share price started its decline in Nov. 10, 2014 and has continued to depreciate. It was noted that the company's stock costs about $36.90 per share today.
"I think it's worth somewhere between $56 and $61," Gaurav S. Iyer wrote. "And this isn't just wild speculation-it is based on hard numbers. All I did was value each of Yahoo's segments separately, and then add them together."
Apparently, Yahoo's market capitalization is believed to be around $34.98 billion. However, the company is actually "the sum of three distinct businesses." By adding the three assets together, the value is higher than the assumed market price of $34.98 billion.
The Internet giant's Core Business, which includes Yahoo! Finance, Yahoo! Japan as well as Alibaba Group Holding Ltd., which holds part of the company's stake, are the three business parts of Yahoo. Its Alibaba stake is actually worth $32.6 billion.
Back in 2012, the company invested $7.6 billion in Alibaba stock. This led to Yahoo gaining more than 428% on that particular investment.
The publication noted that Yahoo! Japan is worth $8.7 billion. In addition, the company also has $6 billion in the bank. By adding these numbers, along with Alibaba's stake at $32.6 billion, Yahoo may actually be worth a market cap of $47.3 billion.
Some analysts believe that Verizon could pay about $8 to $10 billion for the company's Core Business. This means that Yahoo's stock could be worth $60.52 per share.
Meanwhile, in CNBC's Yahoo sale news, the company has shortlisted about 10 bidders for the auction of its Core Business assets. Included in the list are, as previously mentioned, Verizon as well as private equity firm TPG Capital.
Liberty Media chairman John Malone was not able to make the shortlist because of his tax-efficient merger proposal. Some of those who were unsuccessful with the first-round bids are still being updated on the process.
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