Enterprise & Equity Value
Are deferred tax liabilities (DTLs) treated as debt in the EV bridge? What about deferred tax assets?
Model answer
The standard answer is no. Most DTLs arise from timing differences (accelerated tax depreciation) that, for a growing company, roll forward indefinitely and never crystallize into a fixed, dated cash…
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More from Enterprise & Equity Value
- What's the difference between enterprise value and equity value?
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- Why is enterprise value capital-structure neutral but equity value is not?
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- Which valuation multiples pair with enterprise value vs. equity value, and why?
- How do you calculate fully diluted shares?
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