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Google continues it’s downward spiral. At last report the stock had dropped to $515.90 per share. The current share price as of the writing of this post is $495.43.  Meanwhile, Yahoo share price is up by 3.35% owing to Microsoft’s offer of a 45 billion dollar buyout.

The last report on the possible buyout of Yahoo is that Yahoo has not made any decision and continues to explore all options, one option of which is reportedly a possible partnership with Google.

The value of a company can be arrived at in a number of ways from records available publicly. Whilst the stock price will let you know what the market thinks a company is worth, it is important for the prospective investor to be able to spot quickly if a stock price is actually underpricing a company.The first way in which analysts will arrive at a value for a company is by comparing the Net Assets of a company to its stock issue. This generally gives a figure which equates to the value of a company if it were taken over, or went into administration, and was broken up and sold off. Follow a simple example thus:

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