breakup value

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Breakup value

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
He figures that, if McKesson ever makes it to the trading block and no bidding war jacks up the price, the breakup value would be about $90 a share with PCS alone accounting for about $50 a share.
National Bank of Pakistan is well capitalized with capital and reserves of Rs153.6 billion translating into per share breakup value of Rs72/.
captured 1st position in the table of Break-up value with the ratio of 1,173.17% while the company had same position in the table of Breakup value in the preceding year.
Come to think of it, Kmart's new shareholders, today's creditors, might recover more if Lampert looked strictly at the breakup value, but that's for another day's speculation.
In cases such as these, the stock is likely to sell at a deep discount to the firm's potential value (often referred to by raiders as its "breakup value").
National Bank is well capitalized with capital and reserves of Rs153.6 billion translating into per share breakup value of Rs72/-.
The Breakup value of company's share as at 30 September 2012 was Rs86.75.
Bank Al-Habib showed an increase of 3.83 per cent on its Breakup Value over the last year due to increase in its reserves from Rs.
The breakup value of the certificate of Modaraba has gone up to Rs.
The corresponding Earning Per share worked out to Rs.71.07 and Breakup Value at Rs.255.59 per share of Rs.10/- each.
10.50 on July 11, much below its Breakup Value. Similarly, the PE ratio of Pakistan Industrial Leasing and also stood at 2:1 and were quoted below its Break-up Value.
The high Breakup Value of shares in the descending order were:- Company 1995 1994 Prince Glass 29.84 26.75 Balochistan Glass 22.64 23.22 Shabbir Tiles 20.83 19.01 Karam Ceramics 13.26 13.78 Ghani Glass 10.12 10.00