Net Operating Profit After Tax (NOPAT) is the Operating Profit (EBIT) minus Taxes. Another word for Net Operating Profit After Tax (NOPAT) is
Profit after Tax.
NOPAT is necessary for calculating
Economic Value Added.
NOPAT can be calculated at divisional
(Strategic Business Unit) level.
Net Operating Profit After Tax (NOPAT)
does NOT take into account the idea
that a business must cover both the operating costs AND the
capital costs.
More valuation methodologies
