Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 13 February 2009
Length: 5 pages
Data source: Field research
Notes: To maximise their effectiveness, colour items should be printed in colour.
Abstract
Most large companies operate in more than one business. Valuing a diversified company requires separate valuations for each of its businesses and for the corporate headquarters. This method of valuing a company by parts and then adding them up is known as Sum-Of-The-Parts (SOTP) valuation and is commonly used in practice by stock market analysts and companies themselves. However, it is rarely taught in MBA programs or broached in valuation textbooks. Yet the application of the method raises a number of challenges.
Spanish language
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 13 February 2009
Length: 6 pages
Data source: Field research
Notes: To maximise their effectiveness, colour items should be printed in colour.
About
Abstract
Most large companies operate in more than one business. Valuing a diversified company requires separate valuations for each of its businesses and for the corporate headquarters. This method of valuing a company by parts and then adding them up is known as Sum-Of-The-Parts (SOTP) valuation and is commonly used in practice by stock market analysts and companies themselves. However, it is rarely taught in MBA programs or broached in valuation textbooks. Yet the application of the method raises a number of challenges.
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Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 13 February 2009
Length: 6 pages
Data source: Field research
Notes: To maximise their effectiveness, colour items should be printed in colour.