Came across this question. My understanding would be that EV includes the companies debts, but NOPAT does not factor in the tax savings a company receives from said debt. Is this ballpark?
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The entire point of EV/EBITDA as a metric is that it's apples to apples, and that it looks at a firm's operations on an unlevered, pre-tax basis. Looking at things from a capital netural perspective often gets rid of the obfuscation that comes with debt when it comes to valuation. So you don't have to defend why EV is used, just like why you don't have to defend why Equity Value is used in P/E multiples.
The problem with NOPAT is that it adds an element of complexity that it just needless. Different jurisdictions have different tax rates. Are you looking at book tax vs cash tax? Any banked NOLs? If you're taking 2021 or 2022 "EV/NOPAT", are you expecting to generate NOLs? There's just no reason to use EV/NOPAT when the underlying metric is just EV/EBITDA to begin with, which is perfectly fine and universally understood.
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