Valuation: Comps & Precedents
Walk through a simple sum-of-the-parts valuation with numbers: Segment A has $200m EBITDA (industrial peers at 8x), Segment B has $100m EBITDA (software peers at 12x), unallocated corporate costs are -$50m, and net debt is $350m.
Model answer
Value each segment on its own peer multiple: A = $200m x 8x = $1,600m; B = $100m x 12x = $1,200m. Capitalize the unallocated corporate costs at a blended multiple - roughly 9x here - for a deduction…
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