Tag: Sum Of The Parts

  • How To Value Stocks Using Sum Of The Parts (SOTP) Valuation Model

    How To Value Stocks Using Sum Of The Parts (SOTP) Valuation Model

    Introduction Sum of the parts (SOTP) is a type of valuation model for valuing the overall valuations of the company by breaking the business model into several small entities or smaller business models. These collections of business are valued independently and then clubbed to form a singular valuation model for the stock. Mathematical representation SOTP […]