Sum of the parts

Valuing each business a company owns separately, then asking why the whole trades for less.

• Valuation
• Activism and governance

1 idea that carry it

• TechniqueValuationLetter located

  A sum of the parts shows what a take-private bid is paying nothing for

  Value each part a bidder is acquiring; what the bid leaves at zero is the argument against it.

  Take-private analysis, fairness opinions, conglomerate valuation and any activist defence of a holding.

  From Southeastern Asset Management's letter to the Dell board (February 2013) · Mason Hawkins and Staley Cates