breakup value

(redirected from Private Market Values)

Breakup value

Breakup Value

The value of a division in a company if that division were its own independent company. Companies considering taking over another use the breakup value, among other metrics, to determine whether a takeover is worth the time and expense. It is also called the private market value.

breakup value

The market value of all the individual parts of a firm if the firm were to be broken up and the individual parts operated independently. If the breakup value of a firm exceeds the market value at which its stock trades, the firm may be managed and operated inefficiently. In such a case, stockholder holdings would increase in value if parts of the firm were divested. Many takeovers originate when raiders spot firms with breakup values that exceed the prices at which those firms' stocks are traded.
References in periodicals archive ?
Private market values based on real-world sales conducted on sites such as Craigslist and Ebay
When a sellers scans book ISBNs, the Bookseller app provides real-time buyback offers from reputable online vendors, as well as the book's private market values, so that sellers know how much they can expect to earn by selling their used books on sites such as Craigslist and Ebay.
Private market values for luxury hotel properties far exceed public market valuations;
Furthermore, the investment manager's outlook states that the likely degree of decline in private market values is more than fully reflected in the pricing of REIT stocks today.
private market values so sellers know what they can expect to earn by selling their used books on sites such as Craigslist and Ebay
And all this should also convince market participants that private market values are well higher than public trading prices, and that private market players can be and are much more aggressive.
The portfolio includes investments in energy infrastructure, cell towers, self-storage and distribution facilities, as well as residential mortgage bonds, non-performing loans, and investments in catalyst-driven public equities that offer access to underlying assets at discounts to private market values.
At the same time, outside investors, ranging from opportunity funds to private real estate developers, see opportunity in the gap between the Wall Street valuations for REITs and the private market values of the assets held by REITs.
Future earnings are modelled, with private market values estimated through ratio analysis.
For the Touchstone Large Cap Fund, TLC will seek financially stable large-cap companies that it believes are consistently generating high returns on unleveraged operating capital, run by shareholder-oriented management, and are trading at a discount to their respective private market values.
The Fund is subject to the risk that the portfolio securities' private market values may never be realized by the market, or that the portfolio securities' prices decline.
CenterSquare also noted that in past market cycles, recovery of private market values have lagged that of public real estate market values.

Full browser ?