deletions | additions       diff --git a/section_Building_a_Profitability_Valuation__.tex b/section_Building_a_Profitability_Valuation__.tex  index 5697d95..850edcb 100644  --- a/section_Building_a_Profitability_Valuation__.tex  +++ b/section_Building_a_Profitability_Valuation__.tex 
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\end{equation}  where $EV_{t}$ is the enterprise value of the value of the firm receiving the free cash-flows ($FCFF$).  \\  \\  Secondly, we need to define the different components of the model. We follow Damodaran and use his definitions. We are quite aware that there exists numerous definitions for each of the following concepts but Damodaran's definitions can serve as a starting point, where other definitions are refined versions of these basics definitions. Specifically, Damodaran posts articles on his blog (\testit{http://pages.stern.nyu.edu/~adamodar/}) (\textit{http://pages.stern.nyu.edu/~adamodar/})  that summarize the courses he teaches at the Stern School of Business at New York University. In an article posted in 2013 entitled "A tangled web of values: Enterprise value, Firm Value and Market Cap" Damodaran he gives a very clear definition of the accounting concepts we will be using. As a starting point, Damodaran give a simplified example of a typical the  balance sheet. sheet allows us to write the following accounting identity :  \begin{equation}  Cash & Other Non-Operating Assets+Operating Assets=Debt+Equity  \end{equation}  The Assets side of the balance sheet is composed of Cash and Other Non-Operating Assets + Operating Assets. Operating Assets comprise Fixed Assets, Intangible Assets and Working Capital. The other sied of the balance sheet is thus made up od Debt and Equity. \\  Thirdly, we need to identify a certain number of accounting identities similar to the ones we used for the \textit{RIM} in order to link cash-flow generation, the balance sheet and the market value of the balance sheet.