CNET.com has a very interesting report regarding the valuation of Yahoo.  They say that Yahoo is allowing themselves to fade into the sunset by competing with Google in Search, specifically with Paid Search.

If Yahoo were to restructure their business, not only would they be worth more, but they would also become dominant in areas they once were effective.  CNET says that Yahoo should outsource their Paid Search to Google, cut employees by 25% and focus on graphic design.

The belief is that Yahoo will not consider making these moves, instead insisting that they can compete with Google and their paid search efforts.  Yahoo will continue to play second fiddle to Google when it comes to Search and Paid Search, and their market value will continue to decline.