Middle-market case: a diversified group with 3 segments — Industrial $400m EBITDA × 8x, Software $80m × 15x, Real Estate NAV $600m. Net debt $700m. Calculate the equity value.

Industrial = 400 × 8 = 3,200m. Software = 80 × 15 = 1,200m. Real Estate = 600m (NAV). SOTP EV = 3,200 + 1,200 + 600 = 5,000m. Equity value = 5,000 − 700 (net debt) = 4,300m. Sanity check: total group EBITDA 480m + real estate rental income (say 50m) = 530m. Implied EV/EBITDA = 5,000 / 530 = 9.4x — a weighted blend of the segment multiples; read purely as a cross-check against a trading multiple of ~7.5x (not as a second discount figure). The conglomerate discount is defined cleanly as SOTP equity value vs. actual market cap (see pitch tip).