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Author: deadspace Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1671  
Subject: debt Date: 8/5/2012 12:28 AM
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In doing a DCF valuaation how do you guys usually deal with interest paid on debt

I would usually back out the debt to get the final value for the business after the DCF value

--- but do you calculate earnings for the company by subtracting out interest or do you ignore the interest payments

It seems that to include the interest charges and back out the debt the company gets hit twice but to not back out the interest is somewhat unrealistic
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