Edited By Douglas A. McIntyre. Stories by Ryan Barnes.
Over the next several days, 24/7 Wall St. will look at the break-up values of a number of large cap companies. Firms with market caps of over $100 billion have been kept off the list because they are likely to be too large for private equity buy-outs. But, the companies on this list may well end up as targets. Check here for the full methodology.
Ebay (EBAY) is actually worth less broken up as its is as a whole. In pieces, the company is worth about $28, and its trades for about $32. The PayPal operation pulls overall value up. But, then there is Skype. Full analysis.
3M (MMM) on the other hand is worth much more than the current share price. It has a break up value of $109 versus the stock at its present $75. Recent earnings were poor but The company’s consumer and electro groups drag the value down. Dump them, and the share price improves. Full analysis.
Another company worth much more than its current share price is Burlington Northern. The company trades for $79, but is worth closer to $100. It has 24,000 miles of track and that is worth a ton. Full analysis.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.