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Why might a sum of the parts analysis find a company to be undervalued by the market? Select one: a. This might be due to a h
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Answer #1

Option B is correct.

Some of the parts analysis might find a company to be undervalued by market. The reason is, there might be a perception that the management is spread too thin, or the management is engaging in empire building or the company is operating in domains where it has no expertise or competitive advantage.

It has nothing to do with WACC, diversification or other companies being overvalued.  

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