VALUATION METHODS: INCLUDE TAX DEBT AND INTEREST PAYMENT OR NOT?

I'm working on a a valuation and got to thinking when I value the company should I include yearly tax, interest, and principle payments (ie count them as a cost) like you would when using and Equity Residual Approach?

To put it another way instead of just discounting the EBITDAs for the forecasted period and the terminal value using our required rate of rate of return should I really be using net income after taxes (NOPAT) or free cash flows where the EBITDA is reduce by the yearly debt payment (principle + interest)



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