Corporate Valuation without and with Personal Taxes

Content

1. Introduction
2. Valuation only with Corporate Taxes
   1. Capital Markets and CAPM
   2. Profit Taxation and Financing Strategies
   3. Discounted Cash Flow (DCF) Approaches
   4. Valuation with Passive Debt Management
   5. Valuation with Active Debt Management
   6. Comparison of Valuation with Passive and Active Debt Management
3. Valuation with Corporate and Personal Taxes
   1. Relationship between Valuation Approaches without and with Personal Taxes
   2. 3.2 Tax-CAPM
   3. Valuation of an Unlevered Firm
   4. Valuation with Passive Debt Management
   5. Valuation with Active Debt Management
   6. Valuation with Share Repurchases
4. Problems and Simplifications in Valuation Practice
5. Summary

Learning outcomes

After completing this course, the students deeply understand valuation with discounted cash flow methods under different financing strategies. Particular emphasis is placed on incorporating personal taxes into valuation and understanding the relationship between valuation without and with personal taxes. For all cases, students learn how to adjust the cost of equity to leverage and determine a firm’s value with two-stage models. Additionally, the effects of the consideration of share repurchases on the value of a firm are integrated into the valuation models. The course not only provides theoretical competencies, but by implementing various exercises in Excel, the participants gain various practical skills in valuation.

Teaching format

Mixture of online lectures and (asynchronous) exercises. The online course takes place via Zoom

Assessment

Form of assessment:

• Group valuation exercises, mainly during the course
• Case studies and valuation exercises during the course have to be solved with Excel and solutions presented

Timing for assessment:

• One complex case study is given at the end of the course
• The teams have to send a well-formatted Excel file with the solution of all case studies within two weeks after the end of the course to the lecturer.

Lecturers

Prof. Dr. Stefan Dierkes

Course dates

Academic Year: Winter 2025/26

Synchronous dates: November 24 – November 26, 2025

A large section of the workload for this course will be included in the asynchronous and collaborative task to work on a complex case study (see assessment).

! Before application: Please check with your home faculty / programme if the course can be integrated in your curriculum in order to ensure recognition of the credits / ECTS obtained !

Entry requirements: Course participants (MA/PhD students) should have basic skills in valuation with discounted cash flow methods and determining the cost of equity with the CAPM. Furthermore, the participants should know how to use Excel. Knowledge about the incorporation of personal taxes in valuation is not necessary.

Selection of course participants will be based on entry requirements and available course capacities. Furthermore, a priority will be set on selecting students from different ENLIGHT universities to increase diversity of learners.

 

Students from all ENLIGHT partner universities are eligible to participate. Students who meet the requirements mentioned above can apply directly: [application link will follow soon].

The host university will select the permitted number of students, inform the students as soon as possible.

Unsuccessful students will be placed on a waiting list and may get a place in case of drop outs at a later stage.

If you have questions about the course (content, structure, requirements, etc.), please contact:

Prof. Dr. Stefan Dierkes: This email address is being protected from spambots. You need JavaScript enabled to view it.