Why are non-operating assets not a part of EV if non-operating income is a part of EBIT?
Hey guys,
if I am not mistaken, the difference between operating income and EBIT is that EBIT also contains non-operating income (at least Investopedia explains it this way). Now, if we use EBIT/EBITDA for multiples and EBIT to derive FCFF, shouldn't non-operating assets (which generate the non-operating income) be a part of EV?
I get that they can be sold to repay debt, but where's the mistake in the above consideration? Wouldn't this mean the very "apples-and-oranges-comparison" we're trying to avoid?
Appreciate your help.
BR
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