Words / C / Business

conglomerate discount

noun

C2CEFR level
85/100Rarity: very rare
TechnicalRegister

The gap by which a diversified group trades below the summed value of its separate businesses.

Activists keep circling because the conglomerate discount is nearly 30%, and a break-up would unlock all of it.

Similar: diversification discount

Topic: Corporate finance in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More business words: Corporate finance