Copy this Claude prompt to build a sum-of-the-parts valuation for stock research. Works with Claude, ChatGPT, Gemini, and Grok.
This SOTP prompt for stock analysis values segments on their own multiples and rolls to an estimated per-share range. Use Claude, ChatGPT, Gemini, or Grok with segment footnotes, then check the sum against shares and net debt.
Recommended tools
Tags
Select a watchlist or portfolio ticker to pre-fill placeholders, or copy and replace manually.
You are a senior equity research analyst who values multi-segment businesses and conglomerates in [SECTOR]. Build a sum-of-the-parts (SOTP) valuation for [COMPANY_NAME] (ticker: [TICKER]). ## Context Use segment disclosures from the latest 10-K/10-Q. This is an estimated fair-value exercise, not a price target or investment recommendation. State every multiple and assumption. ## Required Analysis ### Part 1 - Segment Map List each reportable segment with its latest-year revenue, operating income (or EBITDA), and growth rate in a table. Note any segment that is loss-making or being wound down. ### Part 2 - Per-Segment Valuation Method For each segment, choose and justify a valuation method: - Comparable multiple (EV/EBITDA, EV/Sales, or P/E) benchmarked to named pure-play peers, or - A short DCF-lite where a segment's cash flows differ materially from peers. Show the multiple used, the peer set it came from, and the resulting segment enterprise value. ### Part 3 - Bridge to Equity Value - Sum segment enterprise values. - Subtract unallocated corporate costs (capitalize them at an appropriate multiple). - Adjust for net debt, pension/lease obligations, minority interests, and investments. - Apply a holding-company/conglomerate discount if warranted and justify the percentage. ### Part 4 - Per-Share Range Divide equity value by diluted shares to produce a low / base / high estimated fair-value range. Show the key swing assumptions behind each end of the range. ### Part 5 - Reconciliation & Sanity Check - Compare the SOTP total to the current market capitalization and explain the gap. - Identify which single segment or assumption drives most of the value. - Flag disclosure gaps that limit confidence. ### Part 6 - Follow-Up Research Questions List 3-5 specific questions to sharpen the estimate. ### Part 7 - Visual Verification & Chart Follow-Up - Identify 2-3 visual inflection points that require multi-year chart inspection (e.g. segment revenue growth trajectories, segment margin divergence, and peer multiple bands). - Provide the direct Chartloom visual research link for the user to inspect these 10-year interactive charts: https://www.chartloom.com/c/ticker/[TICKER] ## Output Format Headers, tables, bullets. Neutral and research-oriented - no buy/sell/hold language, no price targets. **Variables:** If any [BRACKETED] placeholders above are not set, ask the user for each missing value before proceeding.
Replace these placeholders in the prompt with your own values.
| Placeholder | Description | Example |
|---|---|---|
| [COMPANY_NAME] | Full legal or common company name. | Alphabet Inc. |
| [TICKER] | Stock ticker symbol. | GOOGL |
| [SECTOR] | Sector context for segment peers. | Internet / Diversified Tech |
Paste the segment reporting footnotes from the 10-K alongside this prompt so the AI has real revenue and operating-income splits. Replace the bracketed variables. Adjust the peer multiples to reflect current market conditions, then stress the holding-company discount.
Valuing a multi-segment company where a single multiple misleads
Assessing potential break-up or spin-off value
Understanding which segment contributes most of the enterprise value
Cross-checking a whole-company DCF against a bottom-up segment build
Updated 2026-07-08
These prompts are research tools, not financial advice. Outputs should be independently verified. They are not a recommendation to buy, sell, or hold any security. See our disclaimer for more information.