Equity Research
Walk me through a sum-of-the-parts (SOTP) valuation with numbers: Segment A does $200M EBITDA, Segment B does $100M, net debt is $600M, 100M shares.
Model answer
Value each segment at the multiple its standalone peers command: Segment A, the higher-quality business, at 10x EBITDA = $2,000M; Segment B, lower growth, at 6x = $600M. Sum to total enterprise value…
The full, human-reviewed answer is in the bank.
Sign up free and Daily 10 serves you 10 questions a day from all 1,500+ — or go Pro for unlimited reps.
More from Equity Research
- What does a sell-side equity research analyst actually do day to day?
- What is the difference between sell-side and buy-side research?
- How is equity research different from investment banking, both day to day and in the interview?
- Who pays for sell-side research, and how did MiFID II change the economics?
- What does a typical coverage universe look like, and how do analysts add names?
- Walk me through an equity research team's workflow during earnings season.