Trending Content - Investment Banking Forum
| +149 | AI Creating More Work | 44 | 1d |
| +146 | Senior Banker's Guide to IB Recruiting / Group Placement (with a Healthcare Bent) | 18 | 1d |
| +120 | Is pay at BofA really that bad? | 60 | 2h |
| +84 | Day at Macquarie | 12 | 3h |
| +59 | As Lehman people reconvene at UBS, Barclays needs to hire (2023) | 7 | 1h |
| +44 | Is the life of a VP at a 'top-bank' really good? | 15 | 3d |
| +43 | How bad did I mess up | 10 | 8h |
| +31 | Misrepresented Houston IB | 14 | 14h |
| +29 | Law school instead of MBA for RX Banking | 6 | 6h |
| +29 | No BB RO 2026 | 10 | 1d |
Career Resources
You certainly can leave it out of the WACC, but then in that case you'll be discounting FCFF at the unlevered cost of capital and then adding the present value of tax shields to arrive at the enterprise value; this enterprise value will be identical to the enterprise value derived from the WACC method. See "APV Valuation Method" for more context.
But is it also possible to leave it out at the WACC and then not calculate NOPAT in the CF but rather only subtract the actual taxes, as tax shield is now not part of WACC anymore?
You could build out something from net income, so levered free cash flow, which would get you to equity value. And then u could go from equity value to enterprise value.
Ducimus optio ipsum aut. Sunt repellat possimus saepe quia facilis ea possimus id. Omnis hic ducimus consectetur perferendis accusamus.
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...