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Sum-of-the-Parts Valuation: Pricing a Conglomerate Piece by Piece

Valuation • Beginner Investing • 8 min

Some, companies, focus, on, one, business., Others, operate, several, distinct, ones, under, a, single, stock, ticker., Valuing, these, diverse, companies, with, just, one, blended, P/E, or, EV/EBITDA, multiple, can, obscure, the, truth., Sum-of-the-parts, (SOTP), valuation, flips, this, idea., You, value, each, business, segment, separately,, using, the, right, method, and, peer, multiple, for, its, industry.,…

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