Question

Win Goods Inc. is a large multinational conglomerate. As a single business unit, the company's stock price is estimated to be $200. However, by adding the actual market stock prices of each of its individual business units, the stock price of the company as one unit would be $300. What is Win Goods experiencing in this scenario?

Answer 1

Answer: Upon realizing that they maintain business units that are not included in their results and generate a greater benefit, it could be indicated that Win Goods Inc should review their financial performance, because for some reason their separate business units are having a better market valuation. This study may indicate that they should consolidate their results so that the Group's shares are unified in the market.