Breakup Value

Some publicly traded companies have parts that do business in various sectors of the economy.  The value of each segment of a publicly traded company would be known as the breakup value. It is important to keep in mind that the breakup value is an estimate, not an exact figure.

Large conglomerates are sometimes known to have a larger breakup value than their market capitalization, which would essentially mean that the company is worth more split up than put together. This may lead to pressure from shareholders to sell subsidiaries or spin off stock.

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