If the convertible securities have a very high conversion price/strike price and the conversion features are practically certain to never be exercised, it may be practical to include convertible debt in the principal amount of financial debt field in the net debt calculation.

If it is uncertain whether convertible debt will convert, it can be included in the net debt calculation to the extent interest expense on convertible debt is included in the

Estimated net interest expense / (income) field in the capital structure parameters.

However, if convertible debt is included in the net debt calculation, it is not recommended to show valuation results in terms of implied equity value. In that instance, best practice would be to derive equity value through a waterfall analysis from enterprise value using Cyndx Owner or a similar tool.
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