Holding company discount
A reduction against the sum of a holding's asset values: an investor pays less for the basket than for its contents separately.
How to read the number
Arises where the shareholder cannot reach the assets directly: a management structure takes the decisions and the centre's costs eat part of the return.
When the metric lies
The discount does not disappear because it is unfair. At some structures it persists for years, and a sum-of-the-parts valuation never turns into shareholder income.
Also known as: conglomerate discount