Corporate Valuation without and with Personal Taxes
This course gives participants a deep understanding of valuation with discounted cash flow methods without and with personal taxes under different financing strategies.
The first part of the course deals with valuation with corporate taxes but without personal taxes. Based on the capital market with the well-known CAPM, valuation with DCF approaches under active and passive debt management in a two-stage model is analyzed in detail. In addition, we clarify the necessary adjustment of the cost of equity to leverage for each financing strategy.
In the second part, we analyze valuation under additional consideration of personal taxes. It is examined how to determine the cost of equity after personal taxes with the TAX-CAPM. Afterward, we clarify the relationship between valuation without and with personal taxes, and we analyze the valuation of a firm in a two-stage model with personal taxes under active and passive debt management. Furthermore, we derive the formulae to adjust the cost of equity after personal taxes to leverage for all financing strategies. Finally, the effects of the additional consideration of share repurchases on the value of a firm are integrated into the valuation approaches.
The course not only provides theoretical competencies, but by implementing various exercises in Excel, the participants gain various practical skills in valuation.
About the course
Content
1. Introduction
2. Valuation only with Corporate Taxes
2.1 Capital Markets and CAPM
2.2 Profit Taxation and Financing Strategies
2.3 Discounted Cash Flow (DCF) Approaches
2.4 Valuation with Passive Debt Management
2.5 Valuation with Active Debt Management
2.6 Comparison of Valuation with Passive and Active Debt Management
3. Valuation with Corporate and Personal Taxes
3.1 Relationship between Valuation Approaches without and with Personal Taxes
3.2 Tax-CAPM
3.3 Valuation of an Unlevered Firm
3.4 Valuation with Passive Debt Management
3.5 Valuation with Active Debt Management
3.6 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 approaches 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 method(s)
Form of assessment:
- Group exercises conducted with Excel, mainly during the course
- Group presentation of a more complex exercise on the last day of the course
- Well-formatted Excel file with all exercises of the course
Timing for assessment:
- Group exercises and presentation during the course
- Each student has to send a well-formatted Excel file within two weeks after the end of the course
Lecturers
Prof. Dr. Stefan Dierkes (University of Göttingen)
Course dates
Academic Year: Winter 2026/27
Dates: 16., 23., and 30. November and 07. December 2026 from 10 a.m. to 04 p.m.
How to register?
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.
Students from all ENLIGHT partner universities are eligible to participate. Students who meet the requirements mentioned above apply directly to the host university through Application link. Before applying, students should check with their home faculty or programme whether the course can be included in their curriculum and whether the credits will be recognised. Students from Ghent University must obtain faculty approval by completing this form and having it signed by the Faculty Student Administration.
The host university will select the permitted number of students and inform admitted students as soon as possible. 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. Unsuccessful students will be placed on a waiting list and may get a place in case of drop outs at a later stage.
Contact your ENLIGHT coordinator for further information on the application process or consult the linked information:
- University of the Basque Country:
This email address is being protected from spambots. You need JavaScript enabled to view it. - University of Bern:
This email address is being protected from spambots. You need JavaScript enabled to view it. , see application instructions for students at the University of Bern - University of Bordeaux:
This email address is being protected from spambots. You need JavaScript enabled to view it. - Comenius University Bratislava:
This email address is being protected from spambots. You need JavaScript enabled to view it. - University of Galway:
This email address is being protected from spambots. You need JavaScript enabled to view it. - Ghent University:
This email address is being protected from spambots. You need JavaScript enabled to view it. , see information about BIP's and virtual courses - University of Groningen:
This email address is being protected from spambots. You need JavaScript enabled to view it. - University of Göttingen:
This email address is being protected from spambots. You need JavaScript enabled to view it. (for BIP’s) orThis email address is being protected from spambots. You need JavaScript enabled to view it. (other courses) - University of Tartu:
This email address is being protected from spambots. You need JavaScript enabled to view it. , see information about BIP’s and virtual courses - Uppsala University:
This email address is being protected from spambots. You need JavaScript enabled to view it. , see application instructions for students at Uppsala University
Contact
Prof. Dr. Stefan Dierkes,