Hi Shrey - I would again agree with the gentlemen above - if you think about it differently, they are part of the "capital structure" that you cannot change, and so even if you were to exclude them from the EBITDA you were applying a multiple to, the multiple should be lower... Lots of data out there about pre and post IFRS-16 EBITDA multiple evolution that might be worth referencing with the seller.

I’d probably normalize EBITDA by adding a notional lease expense so it’s comparable with peers that use operating lease treatment. Then, keep the actual capital lease payments flowing through the cash flow statement and include the remaining lease liabilities in the enterprise value. That way, both valuation and cash flow reflect the leases consistently. If you need more help. Feel free to DM me