19 Comments
 

Despite lower cash taxes, shouldn't a lower tax rate also increase the WACC through a higher CoD and levered beta? So the final effect on EV would be unknown?

 

Joey Gabagool

The actual EBTIDA is unchanged but the EBITDA margin increases, thus increasing the EBITDA multiple used for the business because high-margin businesses are awarded high multiples. Everyone overthinking the shit out of this is hillarious. 

After he shits on the lincoln dude, drops this nugget lol. Guess that’s what doing no deals the whole year does to you

 

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