Private Market Value (PMV): Definition

"Aggregate market value of a company if each of its parts operated independently and had its own stock price. Also called 'breakup value(분할가치)' or 'takeover value(인수가치)'. Analysts look for high PMV in relation to market value to identify bargains and potential Target Companies.

PMV differs from [:]

• Liquidating Value(청산가치), which excludes Going Concern Value(계속기업가치) and
• Book Value(장부가치) which is an accounting concept."

출처: Private Market Value (PMV): Definition and Much More from Answers.com

breakup value(출처: Investopedia): The sum-of-parts value of a publicly traded company. This value is derived by analyzing each business segment of a company independently. This is usually applied to large cap stocks that are likely to operate in several different markets or industries. A breakup value analysis may be brought about by investors if the market cap of the stock is less than the breakup value for a prolonged period of time.

Investopedia Says:If a company is performing poorly, or the stock has not kept up to the perceived level of "full value", investors may call for the company to be split apart, with proceeds returned to investors as cash, stock in spun-off companies, or a combination of both.Investors can also calculate a breakup value on a perfectly healthy company as a way to determine a potential floor for the stock, or a potential entry point for a prospective buyer. In order to accurately calculate a company's breakup value, detailed data is needed on the revenue, earnings and cash flows for each distinct operating unit of the company. From there, relative valuations based on publicly-traded industry peers can help to derive a value for the segment as a spun off stock.


"Private Market Value (PMV) : 여러 사업부문을 독립적으로 영위하고 있는 대상기업에 대해 각 사업부문별로 가치를 산정하여 합산한 기업가치를 말한다. 만일 특정기업의 주식가치가 PMV보다 낮을 경우에는 해체인수 혹은 자발적 분리정리를 하는 대상이 된다."

출처: M&A 용어집(Daniel's library)