Sum of the parts analysis (SOTP), or break-up analysis, is a method of valuation of a multi-divisional company, holding company, or a conglomerate. The essence of the method is to determine what divisions would be worth if the conglomerate is broken up and spun off or acquired by another company; [1] see Conglomerate discount. The analysis calculates a range of values for a conglomerate's equity by summing the value of its individual business segments or divisions to get the total conglomerate's enterprise value. The equity value is then calculated by subtracting net debt and other non-operating adjustments.
parts, analysis, parts, analysis, sotp, break, analysis, method, valuation, multi, divisional, company, holding, company, conglomerate, essence, method, determine, what, divisions, would, worth, conglomerate, broken, spun, acquired, another, company, conglomer. Sum of the parts analysis SOTP or break up analysis is a method of valuation of a multi divisional company holding company or a conglomerate The essence of the method is to determine what divisions would be worth if the conglomerate is broken up and spun off or acquired by another company 1 see Conglomerate discount The analysis calculates a range of values for a conglomerate s equity by summing the value of its individual business segments or divisions to get the total conglomerate s enterprise value The equity value is then calculated by subtracting net debt and other non operating adjustments References edit Sum of the Parts Analysis macabacus com Retrieved 2015 04 01 Retrieved from https en wikipedia org w index php title Sum of the parts analysis amp oldid 1094342046, wikipedia, wiki, book, books, library,
