Have recently been trying to add more valuation methodologies to my quiver and having read up on Owner's Earnings had a question re: the treatment of debt..
Whilst the calculation assumes that Interest Expenses are included in OE, principle (repayments?) are not. Am I correct in saying then that a standard DCF of derived Owner's Earnings would come up with an OE equivalent Enterprise Value then? And then the subtraction of Net Debt from this figure would arrive at the OE equivalent of Equity Value?
