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  "slug": "sum-of-parts",
  "name": "Sum of parts",
  "category": null,
  "description": "You break the target into its constituent businesses or asset classes, value\neach separately against its own peer set, and show that the total is\nmaterially greater than the current market capitalisation. The \"gap\" is the\nconglomerate discount — or worse, accounting opacity hiding a crown-jewel\nasset.",
  "structure": null,
  "bestFor": null,
  "layer": "document",
  "agent": null,
  "agents": [],
  "whenToUse": "For breakup / spin-off theses",
  "whyItWorks": "- It forces the market to confront **mismatched valuation multiples**:\n  \"this company trades like X but owns Y, which trades at",
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  "signalDescriptions": null,
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  "bodyDocId": "019df22a-9ecd-71db-8fa1-5f5eff36697f",
  "bodyDocSlug": "valuation-sum-of-parts",
  "bodyDocTitle": "Valuation: Sum-of-parts",
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  "version": 1,
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  "examples": [
    "Sum-of-the-Parts Valuation table with segments",
    "list/bullet: High branded intellectual property/franchise businesses such as Choice Hotels, PepsiCo and Coca-Cola trade in the range of 12x – 19x EV/'06E EBITDA.",
    "valuation table with line items for EBITDA, Real Estate Value, Operator Value, Net Debt, and Upside to Equity"
  ],
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    "score": 71,
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      "signals",
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}