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24/7 Wall St. Break-Up Values Versus Share Price TXN, UTX, SGP

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By Douglas A. McIntyre Updated Published
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Break-up valuations of major US companies continues to show disconnect between intrinsic values and market values.

24/7 Wall St. is looking 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. Detailed methodology.

Schering-Plough (SGP) Break-up value $29.67 (Current price $25) Consumer health and animal health businesses have low valuations, but the pharma unit is still a treasure. Detail.

Texas Instruments (TXN) Break-up value $35 (Current price $31.20) Company usually trades at 3x to 5x sales and is at the bottom of that range. Wireless chip unit should be divested. Detail.

United Technologies (UTX) Break-up value $67 (Current price $68) Stock has doubled in last four years making it fully valued. Pratt & Whitney and Hamilton Sundstrand companies, manufacturers of aircraft engines, generation systems, and aviation controls are running on 16% operating margins and are more valuable that the balance of the units. Details.

Douglas A. McIntyre can be reached [email protected]. He does not own securities in companies that he writes about.

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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