IFRS 16

[whistlerbumps]

How are people dealing with IFRS 16 with regards to their EV calculations?

[Foreign Tuffett]

I continue to use a ouija board to calculate EV.

 

All jokes aside, the economic reality hasn't changed, right? So I continue to calculate EV the same way.

[whistlerbumps]

I hear you on not changing economic reality but it will change reported numbers.  Since rent will become D&A and interest for operating leases, EBITDA (and to a lesser extent EBIT) will be inflated by IFRS 16.  Thus you will either need to adjust down those numbers or include the liabilities in your calculation to keep it apples-apples