π° Valuation
Sum-of-the-Parts (SOTP) Valuation
Sum-of-the-Parts (SOTP) Valuation
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π Generated Prompt
Perform a Sum-of-the-Parts (SOTP) valuation for e.g., Alphabet Inc..
Business segments:
e.g., Google Search, YouTube, Cloud, Waymo, Other Bets
Key financials:
e.g., Total Revenue: $307B, Cloud: $33B, YouTube: $31B
Please provide:
1. Identify and define each business segment
2. Select appropriate valuation methodology per segment (DCF, comps, or asset-based)
3. Standalone valuation for each segment
4. Corporate overhead and unallocated costs allocation
5. Conglomerate discount/premium analysis
6. Net debt and non-operating assets adjustment
7. Implied total equity value and per-share price
8. Comparison with current market valuation (is there a breakup value opportunity?)