This research is based on finding the effect of diversification on the value of firms. The research will be conducting using financial and statistical analysis of the data of diversified firms. The analysis of the data will be done using Berger and Ofek (1995) regression and style analysis. This analysis of the data will take a financial perspective and will cover the important theories like capital market internal theory, theory of agency, effect of co-insurance theory etc. Once the data has been analyzed, the methodology used to conduct the research and the empirical results of the research will be explained. In the end, conclusion will sum up the whole research and its results. The statistical tables and results are shown in the appendix portion