How to value a stock?

[ElCubano]

Quote from makloda:

Question is not clear. Worth to whom? A Private equity company will evaluate an investment different than 100 Million individual market participants (=the stock market) or a competitor (i.e. Yahoo might only be worth $20 a share to us mortals but it might be worth $40 a share to Microsoft).

Just like in fine art, value lies in the eye of the beholder.

if microsfot could buy up the whole float at $20 they would not be paying $40....

 

[makloda]

Quote from ElCubano:
if microsfot could buy up the whole float at $20 they would not be paying $40....

That wasn't my point. It doesn't mean it's not worth $40 to them strategically.