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!
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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.
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