About this document
Understanding Adjusted Present Value (APV) by ssinh is a document available to read on EtoBox.
The APV approach values a firm by separately valuing the unlevered firm value and additional financing effects of debt, rather than adjusting the WACC to incorporate leverage. It involves: 1) Calculating the unlevered firm value. 2) Separately valuing the tax benefits of debt financing. 3) Accounting for costs of financial distress, if significant. The key differences between APV and WACC are that APV separately models the tax shields from debt rather than bundling them into WACC, and it allows for diff
- Author
- ssinh
- Language
- EN