Sum-Of-Parts Valuation

外汇网2021-06-19 13:36:40 51

Valuing a company by determining what its pisions would be worth if it was broken up and spun off or acquired by another company.

Taobiz explains Sum-Of-Parts Valuation

For example, you might hear that a young technology company is "worth more than the sum of its parts". This means that the value of the tech company's pisions could be worth more if they were sold to other companies. In most cases, larger companies have the ability to take advantage of synergies and economies of scale that are unavailable to smaller companies, enabling them to maximize a pision's profitability and unlock unrealized value.

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