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Equity- Coglomerate Discount

Heyaz.. I have just recieved my Curriculum and just started reading by equity section. I came across a term named as Coglomerate Discount which means that the company who is in more unrelated business, market tends to apply discount on that stock of the company  in comparison to the stock of the company with narrow focus.
Some explanations were given like:
1. Inefficiencies in Internal Capital Market
2. Endegenous Factors
3. Research Measurement Errors
The thing which is bothering me is If a company is in multiple unrelated business then their risk reduces to a particular sector, Chances of capture oppurtunities increases, High customer base, although also there would be some increased threats but is it necessary that these threats or difficulties in addition with the explanations given above will always be greater than the merits of being in a multiple unrelated business and will lead to discount of the share of that company.?
Hope i was able to make myself clear.

Going_for_CFA_and_ACCA wrote:
You can view a conglomerate as a collection (or portfolio) of business opreations in different sectors. You would expect diversification from being invested in these different sectors but I think it has been observed that conglomerates underperform relative to directly investing in the different business sectors yourself - hence the need for a discount on conglomerates.
That’s correct!

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Sry David ddnt got that…

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