Question

Once Enterprise Value is derived applying EV / EBITDA multiple, to derive Equity Value apart from adjusting net debt, is it necessary to adjust presently outstanding deferred tax liability / asset, as the case maybe?

Answer 1

It depends on how large deferred tax liability/ asset is. I would not worry unless the DTA/DTL is large. For instance, Delta and AA have large DTAs. But unless DTAs or DTLs are large I would not worry so much.