And Altaba is worth far more—indeed, at least 10 times more—than the $4.5 billion Verizon (vz, -0.11%) paid for Yahoo itself: The current stock market value of Yahoo (yhoo, -0.34%) (soon to become Altaba) is about $50 billion.
But some investors who have looked under the hood of the new company think it deserves to be worth a lot more. Altaba is effectively a holding company comprised of Yahoo Japan shares and Alibaba stock, the value of which rose 228% during the tenure of departing CEO Marissa Mayer.
Indeed, at face value, Yahoo’s 15% stake in the Chinese e-commerce giant is worth $53 billion alone, based on Wednesday’s closing price for Alibaba (baba, -1.33%) shares. Add to that the current stock market value of its Yahoo Japan shares, and Altaba’s underlying assets are worth a combined $62 billion.
Yet investors continue to value Yahoo’s holdings in the two companies at much less than what they would be worth trading on the open market.