What are two best practices for testing the sum of the parts

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1. What are two best practices for testing the sum-of-the-parts valuation based on multiples of peers? Why are they considered best practices?

2. Comment on the following statement: "Since many firms' valuations by a sum-of-the-parts multiples methodology are greater than the current market valuation of these firms, a breakup of these firms would add value for shareholders.

Reference no: EM131276178

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