Hi everyone. Currently I’ve faced problem with understanding of EV concept. So basically EV = value of operating assets + value of non operating assets. As far as I understand, when applying DCF approach we start with FCFF/WACC value, then add value of non operating assets: marketable and equity securities, excess cash flow, unutilizied assets and so on.

But at the same time, almost every source I’ve came across stated that EV should be calculated this way: EV = EqV + Debt + NCI - Cash and Marketable securities. So I get every element of the formula except for the latest since we can treat it as non operating assets.

So that’s the point? Why in one way non operating sould be added, in another one should be substracted? It really seems confusing for me. Thanks.