I am wondering about the correct theoretical explanation for two valuation-related issues and would be glad if someone could shed some light on these.
1) When going from Enterprise Value (
-> Now my question is: How can that be the case? Isn't EqV part of EV? How can an asset be of value to Equity holders, but not to Equity and Non-Equity holders jointly?
2) When determining EV, we are either subtracting operating liabilities from operating assets so as to arrive at net operating assets (asset-side approach) or we are summing up all Equity and Non-Equity claims, leaving out operating (i.e. non interest-bearing) liabilities (financing-side approach).
-> Now my question is: Why are operating liabilities not considered to be of value? Isn't this just another (interest-free) source of financing, whose funds generate cash flows and thereby value?
Many thanks in advance!