Can anyone explain the difference? NOPAT is Ebit * 1-taxrate, but what is NOPLAT?
They are the same!
NOPAT = Net Operating Profit after taxes. = EBIT ( 1-T) used in equity. The NOPLAT is used in a variant of the FCF used in Mergers and acquisitions. NOPLAT = Net Operating Profit less afjusted taxes = Unlevered net income + Change in deferred taxes (Part of Corp Fin, for Mergers / Acquisitions) Unlevered Net Income = Net Income + Net Interest after tax (I*(1-t))
So except for the addition of the change in deferred taxes, they are the same CPK? I ran into an example in Stalla Passmaster and for some reason they started with Net Income and never added back in the interest expense, so I got confused
Nevermind I see where I messed up. They added in Interest income, I thought it was interest expense.
It is net Interest Expense * (1-T) = (Interest Expense - Interest Income) * (1-T)
got ya. thanks for the clarification.
Unlevered Income is equal to NOPAT then? Unlevered Income = Net Income + Net Interest After Tax = Earnings + Int*(1-t) = EBIT(1-t) and NOPAT is defined EBIT(1-t) I’m pretty sure of this as per your explanations above, but I just want to verify.
TheAliMan Wrote: ------------------------------------------------------- > Unlevered Income is equal to NOPAT then? > > Unlevered Income = Net Income + Net Interest After > Tax = Earnings + Int*(1-t) = EBIT(1-t) > > and NOPAT is defined EBIT(1-t) > > I’m pretty sure of this as per your explanations > above, but I just want to verify. WHAT ARE YOU DOING HERE?! you need to be practicing for the final match!!!
Are you not praying for the finale tonight at 12 with Captain?
ahaha, thanks for the reminder 
isn’t NOPLAT also: EBITA - taxes ??