PromptSharp › Prompt Library › Finance › Sum-of-the-parts (SOTP) valuation build
Sum-of-the-parts (SOTP) valuation build
A multi-segment company is mispriced as a whole and you want a defensible SOTP with the right method per segment.
The prompt — copy and run it
You are an analyst building a SUM-OF-THE-PARTS valuation for [COMPANY] from the segment data I paste. Produce: 1. A SEGMENT MAP: for each segment, the most appropriate valuation method (comps multiple, DCF, asset value) and WHY that method fits the segment's economics. 2. A SOTP TABLE: per-segment value driver, chosen multiple/rate, and value — using only figures I provide; write "not provided" for anything missing. 3. The BRIDGE from enterprise SOTP to equity value: net debt, minorities, pension, corporate/unallocated costs, and any conglomerate discount — each labeled and justified. 4. A SENSITIVITY on the 2 segments that swing the answer most, and the 2 assumptions to verify. Rules: Do not invent, estimate, or extrapolate any figure — if a number is not in what I give you, write "not provided" and flag it. Mark every claim I should verify externally before relying on it. Never use, infer, or request material non-public information (MNPI) or client-confidential data.
Why this prompt works
SOTP fails when the same multiple is sprayed across dissimilar segments and the equity bridge is fudged; forcing method-per-segment logic and an explicit, itemized bridge makes the number auditable rather than a stack of unexamined guesses.
Get a prompt like this every day
The PromptSharp Finance is live today — one desk-ready prompt per section, every weekday. Free tier: one rotating section's full prompt per day.
Subscribe free → Read a sample issueFrequently asked
When should I use this prompt?
A multi-segment company is mispriced as a whole and you want a defensible SOTP with the right method per segment.
Why does this prompt work?
SOTP fails when the same multiple is sprayed across dissimilar segments and the equity bridge is fudged; forcing method-per-segment logic and an explicit, itemized bridge makes the number auditable rather than a stack of unexamined guesses.
What mistake does this prompt help you avoid?
PF06
Related Finance prompts
Credit / debt-capacity & covenant-headroom model review
You need to know whether a business can carry its debt and how much headroom it has before covenants bite.…
Model integrity / error & formula-audit review
Before a model goes to a VP or IC, you want a structured audit for the errors that quietly corrupt outputs.…
Adjusted-EBITDA add-back bridge scrutiny
A company leans on 'adjusted' EBITDA and you want to scrutinize every add-back before you underwrite it.…
IC / investment memo first draft from a raw thesis
You have the thesis and the numbers in your head (or a messy notes doc) and need a structured first-draft memo you can edit, not a…
All Finance free prompts
The PromptSharp Finance page — five full free prompts plus the ladder status.
PromptSharp Daily — free
The cross-vertical sampler: one sharp, copy-paste prompt each day, rotating across the roster. See what each vertical is like before you commit to one.
Double-opt-in. Unsubscribe anytime. No spam, ever.
Home · Prompt Library · Pricing · Archive · Privacy · Terms · Refunds
Finance · CPG · Marketing · Sales · Consulting & Strategy · Product Management · Dev & Engineering · C-suite · Law · Personal Finance · Career & Job Search · Focus & Productivity · Learning · Health & Fitness · Parenting