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Advanced

Practice Drills: Building a Sum of the Parts Valuation Model

A practice-first companion to Advanced Valuation: Sum of the Parts and Special Situations. Instead of more theory, you build a sum of the parts model in Google Sheets from a blank tab: pull segment data from annual reports and Ind AS 108 notes, value each operating segment with the right metric (EV/EBITDA, P/E, P/B or embedded value), mark listed stakes to NSE prices, apply holding company discounts and tax on stake sales, and bridge the total to a per-share value you can set against the market price. You then run full builds on Larsen & Toubro, Mahindra & Mahindra and Bajaj Finserv, stress-test every segment multiple, back out the stub value the market is paying for the core business, and finish with an SOTP of a company of your choice.

SOTP ModellingSegment ValuationListed StakesHolding Company DiscountStub ValueSensitivity Analysis

MODULES

6

DURATION

~4.5 hrs

TRACK

Value Investing

What You'll Master

Lay out a clean, auditable SOTP sheet from a blank Google Sheets tab

Extract and normalise segment revenue, EBIT and capital employed from annual report segment notes

Match each segment to the right valuation metric and a defensible peer multiple from screener.in

Mark listed subsidiaries to NSE prices and apply holdco discounts and tax on stake sales

Bridge segment values to equity value per share through net debt, minority interest and unallocated costs

Back out stub value and stress-test an SOTP with sensitivity tables and scenarios

Access Level

LEARNER

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Everything included

Full Text Playbooks

Actionable Exercises

Mobile Reading Mode

Lifetime Updates

Curriculum Breakdown

Chapter 1: Setting Up the Model

3 Lessons

How This SOTP Drill Course Works8 min read

Drill: Laying Out an SOTP Sheet From a Blank Tab12 min read

Drill: Extracting Segment Data From an Annual Report12 min read

Chapter 2: Valuing the Operating Segments

4 Lessons

Drill: Converting Segment EBIT Into Segment EBITDA11 min read

Drill: Picking Peer Multiples for Each Segment on screener.in12 min read

Drill: Valuing a Lending Arm on Price to Book12 min read

Drill: Valuing an Insurance Subsidiary on Embedded Value12 min read

Chapter 3: Listed Stakes and Holding Company Layers

3 Lessons

Drill: Marking Listed Stakes to NSE Prices11 min read

Drill: Applying Holdco Discounts and Tax on Stake Sales12 min read

Drill: Valuing Unlisted Subsidiaries and Associates12 min read

Chapter 4: Bridging to Value per Share

3 Lessons

Drill: Handling Unallocated Corporate Costs10 min read

Drill: The Net Debt, Minority Interest and Cross-Holding Bridge12 min read

Drill: Value per Share and the Implied Conglomerate Discount11 min read

Chapter 5: Full Builds on Indian Conglomerates

3 Lessons

Drill: Full SOTP for Larsen and Toubro15 min read

Drill: Full SOTP for Mahindra and Mahindra15 min read

Drill: Full SOTP for Bajaj Finserv15 min read

Chapter 6: Stress-Testing and Using Your Model

5 Lessons

Drill: Building a Segment Multiple Sensitivity Table11 min read

Drill: Bull, Base and Bear Cases for an SOTP12 min read

Drill: Backing Out Stub Value From the Market Price12 min read

Drill: Auditing a Broker SOTP Target Price11 min read

Capstone Drill: Build a Full SOTP for a Company of Your Choice15 min read