EV doubt

Please can someone help me with the below:

  1. EV: Value of the firm
  2. FCFF*(1+g)/WACC-g also equals to the firm value which is the EV?
  3. Where are non-recurring earnings (not something like income from investments and sale of building but a non-recurring item of another nature) recorded in the cash flow statement?
  4. When doing publc comps which is the best multiple to use for valuing a companies (among EV/EBIT, EV/EBITDA, EV/Net Income, P/E)

Enterprise Value = Market Value Debt + Market Value Equity + Minority Interest - Cash and Cash Equivalents

  1. Enterprise value is not the same as the value of the firm. The formula gives the value of the firm. You need to subtract the value of cash and short-term investments from that to get the enterprise value.
  2. The cash flow statement doesn’t distinguish recurring and nonrecurring items.
  • If a nonrecurring item comes from operations, the cash flow will be CFO
  • If a nonrecurring item comes from investing, the cash flow will be CFI
  • If a nonrecurring item comes from financing, the cash flow will be CFF
  1. It depends on the nature of the companies. There is no one multiple that is best for all company types.

Thanks

My pleasure.