What should you do with non-core business assets when calculating the implied equity value?

When determining the implied equity value, the approach to handling non-core business assets is to add their value to the implied equity after calculating it based on core business operations. This means that in the DCF analysis, once you have derived the enterprise value from the discounted cash flows of the core business, you can adjust the implied equity value by including the value of non-core assets.

This process reflects the reality that these non-core assets hold value and can contribute to the overall value of the business from a shareholder's perspective. By adding them after calculating the equity value, you ensure that the valuation accurately represents all assets attributable to the equity holders. Not incorporating these assets could understate the total implied equity value you communicate to stakeholders.