What does conglomerate discount mean?
Definitions for conglomerate discount
con·glom·er·ate dis·count
This dictionary definitions page includes all the possible meanings, example usage and translations of the word conglomerate discount.
Wikipedia
Conglomerate discount
Conglomerate discount is an economic concept describing a situation when the stock market values a diversified group of businesses and assets at less than the sum of its parts. The explanation of this phenomenon comes from a conglomerate's inability to manage various and different businesses as well as do focused companies. Therefore, the market penalizes a multi-division firm and attaches a lower multiple to its earnings and cash flows, thus creating the discount. However, the opposite concept, called conglomerate premium, also exists.
Numerology
Chaldean Numerology
The numerical value of conglomerate discount in Chaldean Numerology is: 1
Pythagorean Numerology
The numerical value of conglomerate discount in Pythagorean Numerology is: 8
Examples of conglomerate discount in a Sentence
Companies are more vulnerable to takeovers or become targets of activist investors if they are burdened with a conglomerate discount.
The advantages from having a diversified conglomerate, for funding purposes for example, are not as pronounced as the valuation discount on conglomerates through complex structures, companies are more vulnerable to takeovers or become targets of activist investors if they are burdened with a conglomerate discount.
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"conglomerate discount." Definitions.net. STANDS4 LLC, 2024. Web. 27 Apr. 2024. <https://www.definitions.net/definition/conglomerate+discount>.
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