kickthatcfa

What I know about EEM is the following:

It's always preferable to use the EEM method whenever there are intangibles included.

You get the value of intangible assets by Subtracting normalized FCFE from return on FA and Return on WC.

Value of Int Asset = Normalized FCFE - return FA - return WC

= Intangible Resid Y then you multiply it by (1+g) / r - g

The case where you dont multiply by 1+g is the Capitalized Cash Flow method where you divide FCFE by r-g cause there's only 1 growth period.

Correct me if im wrong, i hope this helps