What is breakup value?
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What is breakup value? |
Explanation & Answer

Explanation
Just like DCF, economic value, replacement value, breakup value analysis, also known as sum-of-the-parts (SOTP) analysis, is another method of valuation often used in valuing a multidivisional company, holding company, or a conglomerate. Each part/division/subsidiary is individually valued. If the total sum is higher than the company's current value as a whole, the company is a good target for a merger.
Verified Answer
The value of the individual parts/subsidiaries/divisions of a company if they are sold individually
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