Net Operating Profits Less Adjusted Taxes (NOPLAT)
NOPLAT (Net Operating Profits Less Adjusted Taxes): represents the profits generated from a company's core operations after subtracting the income taxes related to the core operations. NOPLAT is often used as an input in creating discounted cash flow valuation models.
1. FCF (free cash flow) = NOPLAT - Net Investment
2. ROIC (return on invested capital) = NOPLAT / Invested Capital