what is the sum of the parts valuation sotp 
the sum of the parts valuation sotp is a process of valuing a company by determining what its aggregate divisions would be worth if they were spun off or acquired by another company the valuation provides a range of values for a company s equity by aggregating the standalone value of each of its business units and arriving at a single total enterprise value tev the equity value is then derived by adjusting the company s net debt and other non operating assets and expenses net debt gross debt less cash and equivalents the formula for sum of the parts valuation sotp is sotp n 1 n 2 n d n l n a where n 1 value of first segment n 2 value of second segment n d net debt n l nonoperating liabilities begin aligned text sotp n 1 n 2 dotso nd nl na textbf where n 1 text value of first segment n 2 text value of second segment nd text net debt nl text nonoperating liabilities na text nonoperating assets end aligned sotp n1 n2 nd nl nawhere n1 value of first segmentn2 value of second segmentnd net debtnl nonoperating liabilities 