Words / S / Business

sum-of-the-parts

noun

C2CEFR level
85/100Rarity: very rare
TechnicalRegister

A valuation approach that values each of a company's divisions separately and adds them together, often revealing a conglomerate discount.

On a sum-of-the-parts basis the group is worth far more broken up than its current share price suggests.

Similar: SOTP

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