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Is it the rule or the exception to add BV to DCF to calculate IV??

Phil,

Obviously I'm not Hewitt, but that's a really good question. I've seen debates rage all over about how to properly do a DCF calculation. For example, should growth capex be added back in to FCF (I believe it should only be added in during the terminal growth stage - it's probably not being spent, hence the no growth). Adding back book value is another item to ponder - if we're running DCF projections out as though the business will last forever, would we ever realize the gain from a liquidation that would make book value relevant? Therefore, should it be counted as part of the value?

It's all gets very theoretical. But I find it fascinating.

Paul
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