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  "notes": "Includes a table detailing the components of Operating Free Cash Flow.",
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      "text": "EV/NOPLAT is equivalent to a degeared PE",
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      "text": "NOPLAT is often stated after adjustments to better reflect economic profit",
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      "text": "However, the calculation of NOPLAT introduces a measure of subjectivity. This makes it harder to compare to other parties' calculations of NOPLAT.",
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      "text": "The NOPLAT multiple is effectively a degeared PE and is a perfectly reasonable statistic to use provided it is measured on a consistent basis across companies. EV/NOPLAT can be used as a substitute for EV/EBIT.",
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      "text": "NOPLAT is a more sophisticated and complete form of EBIT that allows for differences in tax efficiency and effective tax rates. If the company were all equity-financed, NOPLAT would equal earnings.",
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      "text": "Formula: EV/OpFCF = (ROIC - g) / (ROIC x (WACC - g) x (1 - T))",
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      "text": "NOPLAT is post-tax EBIT. However, as commonly used, NOPLAT (or NOPAT) refers to EBI after adjustments to accounting profit to better reflect economic profit.",
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      "text": "Formula: EV/NOPLAT = (ROIC - g) / (ROIC x (WACC - g))",
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      "text": "Definition: Core EV/operating free cash flow (OpFCF). ROIC is calculated using OpFCF in the numerator.",
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