Portfolio Discount refers to the amount or percentage deducted from the value of a business enterprise to reflect the fact that the enterprise owns unrelated operations or assets that are not in sync for efficient and effective operations. In business valuation analysis, the emphasis is on the core business of the enterprise which is the source of income and cash flows. If the company owns unrelated businesses and assets, these are excluded in the valuation analysis. Business valuators apply portfolio discounts to excluded unrelated business and assets from the computation.