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Build a Sum-of-the-Parts (SOTP) Valuation: AI Prompt for Claude & ChatGPT

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

ChatGPTClaudeGeminiGrok

Tags

ValuationAdvancedPro

The Build a Sum-of-the-Parts (SOTP) Valuation prompt (Claude, ChatGPT, Gemini, Grok)

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.

Variables

Replace these placeholders in the prompt with your own values.

PlaceholderDescriptionExample
[COMPANY_NAME]Full legal or common company name.Alphabet Inc.
[TICKER]Stock ticker symbol.GOOGL
[SECTOR]Sector context for segment peers.Internet / Diversified Tech

How to use this prompt

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.

Tips

  • SOTP is only as good as the segment disclosure - if segments are lumped together, note the limitation explicitly.
  • Use pure-play peers for each segment's multiple rather than a single blended company multiple.
  • Do not forget unallocated corporate costs; capitalizing them is easy to overlook and materially lowers value.
  • A large gap between SOTP and market cap is a research prompt, not a conclusion - investigate why the market disagrees.
  • Test the conglomerate discount at 0%, 10%, and 20% to see how much it drives the range.

When to use this prompt

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.