dirk01

theres no point in projecting debt in my view. EV should approximate the value of the net operating assets. people tend to define it in terms of the liability side of the balance sheet as market value of equity plus net debt, because thats how you calculate it. but thats of course equal to the net operating assets, i.e. cash-flow generating assets (including intangibles) plus net working capital.

the projected fluctuations in the net debt will affect your future leverage but not the value of the net operating assets, absent of any other info. unless you know management is going to borrow in order to finance a specific expansion project which you can quantify and whose impact is not already priced in the current market cap, i wouldnt touch the numerator when I calculated forward EV/EBITDA multiples