Market cap isn't the value of a company, but rather the value investors place on the shares times outstanding shares.
In Yahoo's case it's priced so cheap because investors aren't betting they'll get a lot of return (dividends and buybacks).
In Yahoo's case it's priced so cheap because investors aren't betting they'll get a lot of return (dividends and buybacks).
What's the difference? (honest question)
My understanding is that, theoretically, share price is intended to reflect expected value of future payouts (dividends) assuming the company lasts forever. In practice, I would think share price is more likely to reflect expected value of future payouts over some fixed time period plus expected time-adjusted price appreciation over that same interval, which seems to be at least as reasonable a method.
What is the (monetary) value of a company other than return to owners?