Sum-of-the-parts with finance operations. One really useful application of sum-of-the-parts valuation is for valuing companies or corporates with banking or financing operations. This could be, for example, a retailer that's got banking operations or a company that provides customer financing. That's particularly common for industrial companies. For example, capital goods, autos manufacturers and aerospace companies as their customers often lack sufficient funds to buy their goods upfront. Either way, this essentially means that we have a corporate business with a financial services business attached. Now, this causes a challenge for evaluation because financial services businesses are valued in a different way to corporate businesses. Enterprise value doesn't really work as a concept for financial services, so instead, we usually use equity valuation techniques but we might still want to use enterprise value techniques to value the industrial operations. Fortunately, companies with finance operations typically provide really detailed segment disclosures which completely carve up the income statement and the balance sheet for their industrial and financing operations. And we can use these disclosures to build a sum-of-the-parts valuation. We start with the industrial operations and using either an EV multiple, or DCF, we calculate the EV of this part of the business. We can then use the balance sheet of the industrial operations to walk over the EV bridge and calculate the equity value of the industrial operations. We then move on to the finance operations and this time using either a P/E multiple or DCF to equity valuation, we calculate the equity value of finance operations. We can then combine these two equity values to give the total equity value for the firm.