maratikus

EV is agnostic about net debt levels. If you are assuming higher levels of debt in the future, that debt could only be used to invest in the business or pay down equity. In the former, that affects your forward EBITDA assumption. For the latter, the impacts "net" out so to speak for the EV calc (i.e. net debt goes up, but market value of equity goes down). You would have to do your fancy math to figure out the impact per share.



Edited 1 time(s). Last edit at Monday, August 11, 2008 at 03:08PM by joekinde.