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
| +128 | If Tik Tok is forced to sell, what banks do you think would be involved in the deal? | 59 | 1d | |
| +49 | Intern Ettiquette | 14 | 5h | |
| +46 | Ranking banks that went under | 34 | 4h | |
| +39 | Burnt Out M&A ASO | 22 | 1d | |
| +38 | Relevance of A-Levels for U.K. London recruiting | 27 | 24s | |
| +26 | What are hours like at BBs in London? | 48 | 10h | |
| +26 | 2024 new grads who didnt get return offers update | 12 | 10h | |
| +19 | 3.7 at semi target, how can I prep for recrutiing | 5 | 4d | |
| +19 | Lateral from BB M&A to MM A&D - Tips for Interviewing for A&D? | 7 | 5d | |
| +19 | PSA to gymcels: focus on the summer internship | 9 | 1d |
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.
Asperiores aut magni et et. Recusandae facilis asperiores et non dolor. Reiciendis ipsum recusandae architecto qui neque vitae odio. Ipsam culpa dolor ipsam non fugit.
Explicabo debitis quis fugit architecto explicabo illum. Repellendus qui accusamus illo itaque soluta nostrum totam. Et et hic et ratione omnis qui mollitia.
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...