Sum of the parts
Programmes, corporate costs, net cash, per share.
By Surojit Chakraverti, founder of L3VLUP and an investor running a long-short healthcare and technology equities strategy.
On this subject: sum of the parts.Updated 30 September 2026
Part of healthcare financial models, with the models, labs and guides around it.
What it does
The company as the sum of its programmes. Each rNPV is added; the present value of the unallocated corporate costs, which are paid whatever the pipeline does, is subtracted; net cash is added; the result is divided by the diluted share count and set against the price. A discount-rate sensitivity re-prices the whole company in live formulas, and a line says how much of the value is probability.
Where it lives
The same schedule in each model that carries it, with the rows to open. Open a model in the browser, go to the sheet, and click the lines.
- Assumptions, rows 9–16: Discount rate, Tax rate, Diluted shares outstanding, Cash and investments…
- SOTP, rows 6–9: Year, Unallocated corporate costs, Present value of corporate costs, Risk-adjusted cash flow, net of corporate costs
- SOTP, rows 12–22: Programme A rNPV, Programme B rNPV, Programme C rNPV, Corporate costs, present value…
- SOTP, rows 25–28: Discount rate increment, Discount rate, Equity value per share, Sensitivity centre - equity value per share
What a reviewer looks for
- Corporate costs left out.
- Cash added without the debt subtracted.
- Basic shares where warrants and options are outstanding.
Learn it, then build it
Vocabulary: Sum-of-the-Parts (SOTP), Net Debt.