An alternative approach to the Enterprise Valuation method adds the tax shield from paying interest back into the flows and discounts at a before-tax weighted average cost of capital.

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The alternative approach to Enterprise Valuation, known as the Adjusted Present Value (APV) method, adds the tax shield from interest payments to the cash flows and discounts them at the before-tax weighted average cost of capital.

An Alternative Approach to the Enterprise Valuation Method Adds the Tax