sgupta0827

Unless you are also going to use a multiples-based valuation approach, there really is no need to normalize historic earnings.  Whether or not you would use normalized projections, or projections that include company-specific nonrecurring or ”non-market” items, really depends on what you are using the valuation for.  If you are looking at the company as an acquisition target and the acquiror could avoid those items, then you should normalize the projections.  If you are looking at the equity as a minority investor with the expectation that those items will be incurred, then you really should leave them in the projections.