deletions | additions       diff --git a/section_Building_a_Profitability_Valuation__.tex b/section_Building_a_Profitability_Valuation__.tex  index d50a302..a2085ba 100644  --- a/section_Building_a_Profitability_Valuation__.tex  +++ b/section_Building_a_Profitability_Valuation__.tex 
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\begin{equation}  EV_{t}=IC_{t}+\displaystyle\sum_{i=1}^{K}\frac{A_{t+i}}{(1+WACC)^i}  \end{equation}  Using the notion of persistence rate allows us to simplify even more the valuation equation. The persistence rate $\omega$ is defined such that $A_{t+1}= \omega^i A_{t}$. $\omega$ is necessarely less than one so that abnormal earnings fade away at speed $\omega$.  \\  \\  Finally, Eq. becomes :   \begin{equation}  EV_{t}=IC_{t}+(\frac{1}{(1+WACC-\omega})(NOPAT_{t+1}-WACC\times IC_{t})  \end{equation}