Sum of parts valuation: related pages
Demerger
Spinning off business into a completely separate company. Usually done by distributing shares in the new company to existing company.
Tracking stock
Securities which are designed to have a value that reflect the value of a division of a company rather than the company as a whole.
Valuation ratios
A measure of how expensive a share is obtained by dividing a measure of cost against a measure of value or profits.
PE ratio
Share price divided by earnings per share.
EV/EBITDA
Enterprise value divided by earnings before interest tax depreciation and amortisation.
CAPM
A method of valuing securities or an investment using a discounted cash flow (DCF) using a risk adjusted discount rate.
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