Valuation of loss carryforwards in the context of business valuation

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Valuation of loss carryforwards
  • Fundamentals of business valuation
  • Literature review
• DCF valuation methods
  • The WACC method
  • The APV method
  • The Flow-to-Equity method
• Example case
  • Assumptions and simplifications
  • The indirect method
    • The WACC method
    • The APV method
    • The Flow-to-Equity method
  • The direct method
    • The WACC method
    • The APV method
    • The Flow-to-Equity method
  • Interpretation of the results
• Conclusion

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This bachelor thesis examines the valuation of loss carryforwards in the context of business valuation. The study aims to provide a comprehensive analysis of the theoretical framework for incorporating loss carryforwards into valuation models, and to demonstrate the practical application of different valuation methods by applying them to a specific case study.

• Valuation of loss carryforwards
• Discounted cash flow (DCF) valuation methods
• Application of valuation methods in a case study
• Impact of loss carryforwards on business valuation
• Comparison of different valuation methodologies

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter 1 provides an introduction to the topic of loss carryforwards and their importance in business valuation.
• Chapter 2 delves into the fundamentals of business valuation, outlining key concepts and theories. It also examines existing literature related to the valuation of loss carryforwards.
• Chapter 3 discusses various DCF valuation methods commonly used in practice. This includes a detailed explanation of the WACC method, the APV method, and the Flow-to-Equity method.
• Chapter 4 presents a case study that demonstrates the practical application of the valuation methods outlined in Chapter 3. It showcases how the different methods are applied to a hypothetical company with loss carryforwards, considering both direct and indirect approaches.

Schlüsselwörter (Keywords)

The key themes and concepts covered in this thesis include: Business Valuation, Loss Carryforwards, Discounted Cash Flow (DCF) Methods, Weighted Average Cost of Capital (WACC), Adjusted Present Value (APV), Flow-to-Equity, Case Study, and Valuation Methodology.