Sum of the Parts (SOTP) Valuation
Values each business segment independently and sums for total enterprise value. Essential for conglomerates (GE, MMM, HON), multi-segment tech (AMZN: AWS + Retail + Ads, GOOG: Search + Cloud + YouTube), and holding companies. SOTP often reveals "hidden value" when the market undervalues individual segments.
Preflight
Run canonical pre-flight per contracts/preflight.md.
Include the X-Agentii-Trace header on every tool call per contracts/x-agentii-trace-header.md — carry the _run_id from your first tool result and name yourself (and your parent, if you were spawned).
Triggers
- sum of the parts valuation {ticker}
- SOTP analysis {ticker}
- segment-based valuation {ticker}
- breakup value {ticker}
- conglomerate valuation {ticker}
- parts worth more than whole {ticker}
- segment sum of parts {ticker}
- business segment valuation {ticker}
- hidden asset value {ticker}
- SOTP {ticker}
Defaults
| Parameter | Default | Notes |
|---|---|---|
| segment_discovery | statement_tree | Use get_statement_structure for segment identification |
| peer_multiples | sector | Apply sector-appropriate multiples per segment |
| include_corporate | true | Subtract corporate overhead, net debt |
Methodology
Retrieval Scope
unstructured_document_search — SOTP requires segment financials from XBRL (structured) AND segment narrative/business description from MD&A (unstructured) for appropriate multiple selection.
Retrieval Strategy
See contracts/retrieval.md for the canonical decision tree; skill-specific retrieval detail is in references/methodology.md.
Temporal Scope
Default lookback: 4 fiscal quarter(s); maximum: 12. The default balances recency against the trend window this analysis requires.
Tool Allowlist
Per frontmatter allowed_tools:
search_xbrl_facts— primary structured financial facts (is_primary default)search_companies— ticker resolution + company context (entity-alias fuzzy match)get_realtime_quote— latest market price for valuation cross-checkssearch_documents— Layer 1 document discovery (page-level silver records)read_source_outline— Layer 2 lightweight page map (description + keywords)read_source_deep_outline— Layer 2.5a deep page map (table_titles/drivers/metrics)read_source_pages— Layer 3 deep read of selected pages with table markersget_statement_structure— XBRL presentation tree (concept hierarchy)
Protocol
Step-by-step execution detail is in references/methodology.md.
Deliverable Chain
Inputs → Build → Validate → Output → Next
- Inputs: resolved ticker + structured facts (
search_xbrl_facts,get_company_financials) and any filing pages from the three-layer protocol. - Build: write the
.mdsum-of-the-parts valuation (segment multiples, conglomerate-discount analysis) per## Output Structure. - Validate: run the
## Validation Gatesbelow. - Output: write the artifact path per
## Output File. - Next: append to
agentii.md; hand off to a downstream pitch/review skill if requested.
Output File
Write the final deliverable to {ticker}/{YYYY-MM-DD_HHMM}_sotp-valuation_{affix}.md.
Output Structure
The deliverable is a structured markdown report written to the path in ## Output File. Full section-by-section template (headings, tables, and field definitions) lives in references/output-structure.md. Required elements:
- Executive Summary — headline conclusions (≤200 words).
- Core analysis sections — per this skill's methodology and analyst modes.
- Data classification — tag findings
[FACT]/[DEDUCTED]/[VIEW]percontracts/snapshot-synthesis.md. - Coverage Gaps & Citations — inline
/v/citations are PRIMARY (immediately after each fact); the bottom Citations section is a non-duplicative roll-up index. - Output frontmatter — emit the FR-090 structured block per
contracts/output-frontmatter-schema.md.
Citations & memory: follow contracts/citation-and-memory.md — ≥1 citation per 200 words; every material fact, table row, and metric is immediately followed by its inline clickable https://agentii.ai/v/{ticker}/{citation_id}/{N} link; a bottom Citations section provides a non-duplicative roll-up index; the closing TUI reply includes a compact Key Citations list (headline 5–10 facts) of clickable /v/ URLs; and append the run to agentii.md per contracts/agentii-md-schema.md.
Validation Gates
- Segment coverage: segment revenues must sum to ≥80% of total reported revenue. If failed: flag segments representing <80% of revenue; note "significant unallocated revenue."
- Valuation consistency: segment multiples justified by at least one comparable company or sector norm per segment. If failed: flag segments with unsubstantiated multiples.
- SOTP bridge integrity: Segment Sum - Corporate + Adjustments = Total Equity within 1%. If failed: refuse delivery; check bridge arithmetic.
Tool Fallbacks
Per-tool failure modes and fallback actions are tabulated in references/tool-fallbacks.md.
Memory & Snapshot
- Memory load (pre-flight): load prior workspace context for the ticker before retrieval — see
contracts/memory-load.md. - Structured output frontmatter: emit the FR-090 block (
key_metrics,conclusions,facts_count,deducted_count,views_count,citation_count) percontracts/output-frontmatter-schema.md. - Snapshot synthesis: after writing the deliverable, update the two-tier snapshot and classify findings as
[FACT]/[DEDUCTED]/[VIEW]— seecontracts/snapshot-synthesis.md. - Session archival: record the run under
sessions/{YYYY-MM-DD}/and updatesessions/INDEX.mdpercontracts/session-format.md.
Final Summary (TUI)
End the closing chat reply with a compact Key Citations list (headline 5–10 facts), each a clickable https://agentii.ai/v/{ticker}/{citation_id}/{N} link, so the user can cmd+click straight to the exact SEC page. See contracts/citation-and-memory.md.
Error Handling
| Failure Mode | Action | User-Facing Message |
|---|---|---|
| No segment data | Company reports as single segment | "{ticker} reports as a single operating segment — SOTP not applicable. Use DCF or comps." |
| Missing segment financials | Proceed with available data; flag gaps | "Segment financials incomplete for {segment_names}; SOTP based on partial data." |
