hard · Investment Banking valuation-core

In a SOTP (Sum-of-the-Parts) analysis, if a company's high-growth Tech division is valued at $500 million and its mature Industrial division is valued at $300 million, but the company's consolidated market EV is $700 million, the $100 million difference is known as:

  1. Synergy Value
  2. Control Premium
  3. Liquidity Discount
  4. Conglomerate Discount

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