Definition for : Sum-of-the-parts method
GLOSSARY LETTER
The sum-of-the-parts method consists in valuing (see valuation) the company's various Assets and Liabilities separately and then adding them together. This method is more a combination of the techniques used in the Direct method and Indirect method rather than a method in its own right.
(See Chapter 32 Capital structure and the theory of perfect capital markets of the Vernimmen)
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