where did i see this? not NOPAT, but NOPLAT. for some reason it popped into my head and i don’t know what it is. hate it when that happens. what section is this in? thanks.

net operating profit less adjusted tax ?

still have to cover some material in equity valuation :frowning: this week

NOPLAT = EBITA-T FCF = NOPLAT + Depric - FCinv - WCinv Edit: P. 109 from Schweser Equity Valuation / EM section

Ahhh, the emerging mkt section. there’s one i would LOVE to see tested! sh*t. thanks McLeod.

No prob. Schweser seems to think that the testing of EM will be mostly conceptual… I hope they are right.

Can someone refresh me on the differences between NOPLAT and NOPAT?

There is no differences, afaik. NOPAT = NOPLAT. Different names in different books, don’t know why.

Are you serious? That will make me so mad, I saw NOPLAT somewhere earlier today around 8am and spent most of the morning at work churning over what could make it different from NOPAT in the back of my head and panicking all the while about how I’m forgetting stuff.

really? same? wtf.

confirmed. it’s the same thing. i’m assuming wikipedia is correct. NOPLAT = Net Operating Profit Less Adjusted Taxes. Used in preference to Net Income as it removes the effects of capital structure (debt vs. equity). The Operating Profit is prior to interest and taxes being subtracted, which makes NOPLAT equal NOPAT.

It appeared in 2 places. One is emerging market and the other is DCF calculation for merger and acquisition. I think NOPLAT and NOPAT are not the same. NOPLAT is for free cash flow. NOPAT is for EVA calculation which is EBIT * (1 - t).

so NOPAT is a typo ? it should be NOPLAT ?

I seem to remember NOPLAT being different. In the EM sec. you are dealing with different inflation rates and that lead to an adjustment in the taxes. Very crude description, and very fuzzy, but …

NOPLAT stands for Net Operating Profit or Loss After Tax NOPAT stands for Net Operating Profit After Tax Same thing…

shoot me now…

Ok, I’m not seeing much concrete evidence either way here, but I know for sure beyond a doubt that NOPAT = EBIT*(1-t). And I’m thinking that NOPLAT = NOPAT + Interest*t or NOPAT plus the interest tax shield. Could be wrong though, it’s happened before.

Net Operating Profit or Loss after Tax = NOPLAT

I don’t care what NOPLAT means, I know that NOPAT = EBIT*(1-t) - that’s enough.

we need JDV to chime in here *rolls out the red carpet*