Break-up valuations of major US companies continues to show disconnect between intrinsic values and market values.
24/7 Wall St. is looking at the break-up values of a number of large cap companies. Firms with market caps of over $100 billion have been kept off the list because they are likely to be too large for private equity buy-outs. But, the companies on this list may well end up as targets. Detailed methodology.
Schering-Plough (SGP) Break-up value $29.67 (Current price $25) Consumer health and animal health businesses have low valuations, but the pharma unit is still a treasure. Detail.
Texas Instruments (TXN) Break-up value $35 (Current price $31.20) Company usually trades at 3x to 5x sales and is at the bottom of that range. Wireless chip unit should be divested. Detail.
United Technologies (UTX) Break-up value $67 (Current price $68) Stock has doubled in last four years making it fully valued. Pratt & Whitney and Hamilton Sundstrand companies, manufacturers of aircraft engines, generation systems, and aviation controls are running on 16% operating margins and are more valuable that the balance of the units. Details.
Douglas A. McIntyre can be reached [email protected]. He does not own securities in companies that he writes about.
Contact [email protected] for any questions or corrections.
Top Gaining Stocks
Top Losing Stocks