Can you use ROIC to justify a divestiture?
Let's say I need to pitch a conglomerate to sell one of its subsidiaries. Running a DCF of the child company yields a higher present value than its expected sell price, but the conglomerate has a crazy high ROIC. Could you say that, because it could put the money to better use by investing in its other lines of business, it should get a lump sum of cash by selling the subsidiary? Thanks.