A company's value based on the assumption that its divisions being sold individually is?

A company's value based on the assumption that its divisions are sold individually is often referred to as the "breakup value" or "sum-of-the-parts" valuation. This approach evaluates each division or segment separately, estimating what each would be worth if sold off, and then sums these values to arrive at the total company value. This method can reveal hidden value in a company that might be overlooked when assessing it as a single entity, especially if certain divisions are more valuable independently. It is particularly useful in cases where a company's divisions have distinct markets or operational focuses.