Sum of Part Valuation
Hey everyone,
I have a few questions regarding a sum of the parts valuation, that I hope you guys can help answer. The company would be considered a conglomerate, even though they have two segments that provide the majority (>90%) of all revenues.
Would one go through a Multiples/DCF analysis for all segments? Or just for the group as a whole?
The company also has some kind of financial arm, which seems to be dealing with real estate and stock investments. Which method would you use to value this?
The financials for the segments are not broken out at all, just Revenue and EBIT are given on a per segment basis. Any way to get to EBITDA?
The company has released Q1-3 2011 reports. Should I just estimate the Q4 numbers and then put it as 2011E?
Thanks!
I'd use a simple multiple valuation for each segment and sum up the values of each segment. there are some more sophistic approaches to value the company. the most important thing is the ability to justify your approach and value respectively.
actually, it doesn't really matter which activity the company focuses on. just find appropriate peers and that's it. I'm sure there are plenty other companies that are involved in similar investing acitivies.
if you cannot identify depreciation there is not way to calculate ebitda. just do some more research and you might find it.
yes indeed
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