Hi! I was wondering whether you could help on the following question. When using DCFF method, you end up with the EV. Most DCF templates then substract the net debt to derive the Equity Value. However, when using other methods, such as EBITDA multiples, we tend to perform further adjustments (related to minorities, provisions, etc.) before getting to the Equity Value. Would it make sense to perform this full range of "equity bridge adjustments" when getting the EV from a DCF? Appreciate your help. Thanks!
Trending Content - Investment Banking Forum
| +121 | I think I’m logging off after ER visit | 24 | 6d |
| +110 | AI Creating More Work | 36 | 6h |
| +109 | Is it Bad That I ALREADY Don’t Care? | 32 | 1h |
| +95 | Senior Banker's Guide to IB Recruiting / Group Placement (with a Healthcare Bent) | 11 | 18h |
| +82 | Shit PWP Culture | 60 | 3d |
| +64 | Is pay at BofA really that bad? | 18 | 1h |
| +44 | How easy was recruiting for you? | 21 | 5d |
| +38 | Is the life of a VP at a 'top-bank' really good? | 12 | 1h |
| +36 | 22yo IB Analyst just had mental health breakdown | 11 | 1d |
| +22 | Law school instead of MBA for RX Banking | 3 | 2d |
Career Resources
Yes - Always makes sense if you're interested in equity value. Both methods give you enterprise value.
It obviously depends on how the FCF in the DCF is derived. Does it include pensions (service + interest cost)? Than of course substracting it would lead to double counting if you would substract it in the end. Goes generally for every item.
Ab id qui molestiae officiis. Velit nesciunt error labore odio.
Assumenda omnis fugiat ea debitis esse quia omnis. Mollitia totam cupiditate id quia.
Officiis nihil alias dolor magnam. Voluptatem quo aliquam voluptatem eum non corporis. Sed ut et voluptatem aut. Dolorem quia consequatur quae rerum ad. Delectus accusantium qui cupiditate culpa quae et. Laudantium nisi voluptatibus et aut eius et repudiandae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...