DuPont's split into three companies is a win for shareholders: Here's the math

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By separating these businesses into individual companies, the market should apply multiples closer to their peers and well above DuPont's current valuation.

The move is classic Ed Breen. DuPont's decision to split into three publicly traded companies, announced Wednesday, is another page out of the long-time CEO's playbook of doing whatever's necessary to create value for shareholders. In fact, when we began buying shares of the specialty chemicals maker back in August, we said we expected Breen to take action if the stock continued to trade below the sum of its parts.

5 times — which is incredibly cheap for a quality diversified industrial — you are talking about a business with an enterprise value of about $19.8 billion. Add these three up and the total enterprise value is about $52 billion. To get the equity value, we subtract the net debt from the total enterprise value. DuPont ended the first quarter of 2024 with $7.776 billion in total debt and $1.934 billion in cash and cash equivalents, meaning net debt was $5.84 billion.

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DuPont to separate into three independent companiesDuPont to separate into three independent companies
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