Definition
The value of a company if each of its parts were independent, publicly traded entities. Companies often consider the breakup value of targets when evaluating a possible takeover. also called Private Market Value (PMV).

In simple words : Breakup value is what a company would be worth if its component parts were sold off and the liabilities were paid.If the company is stripped down and sold in pieces or components then how much will it worth to shareholders.

A high breakup value is an indicator of the presence of a credible amount of assets. The assets may be held by both a parent organization and a series of subsidiaries, or be distributed among various locations or divisions that operate under the same company name.

Why we calculate it

It provides inner sight in the business model and cash flow in the organisation.It also provides information about the company competitors and its advantages above them.

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This is a major reversal pattern in technical analysis which occurs after an extended uptrend.In simple understanding this pattern looks like 2 consecutive peaks which are almost equal with a moderate trough in between.

It is considered as a indication of buyers are loosing interest in it and upward trend is weakening.Upon completion of this pattern, the trend is considered to be reversed and the security is expected to move lower. stockcharts.com have specified some key points which should be considered before reaching any conclusion.First is the prior trend in case of the double top, a significant uptrend of several months should be in place. First peak should mark highest point in current trend.Its trough or the declines.Second peak now the second peak would be with low volume and meets resistance from the previous high.Now when there is decline from second peak the decline in volume and accelerated descent should be watched.Then there are support break and support turned resistance.And lastly the price target.The pattern is completed when the security falls below or breaks down the support level that had backstopped each move the security made, thus marking the beginnings of a downward trend.

Volume is also a key point to watch out as there should be increase in volume when the security falls below the support level.

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