Sum-of-the-Parts Valuation (SOTP) Meaning, Formula, Example
What Is the Sum-of-the-Parts Valuation – SOTP? The sum-of-the-parts valuation (SOTP) is a process of valuing a company by determining what its aggregate divisions would be worth if they were spun off or acquired by another company. The valuation provides a range of values for a company’s equity by aggregating the standalone value of each…