Company Valuation Under IFRS : Interpreting and Forecasting ...

Company valuation under IFRS
5. Leveraged WACC formulae for different discounting of Tax Shelters
V F =V A +I/(K TS -g)tV D
V D =V F W D
V F =V A /[1-I/(K TS -g)tW D ]
FCF/(WACC-g)=FCF/(K A -g)/[1-I/(K TS -g)tW D ]
WACC-g=(K A -g)[1-I/(K TS -g)tW D ]
WACC=KA-(K A -g)/(K TS -g)ItW D
If K TS =K A
WACC=K A -ItW D
If K TS =I
WACC=K A -(K A -g)/(I-g)ItW D
6. Leveraged Beta formulae for different discounting of Tax Shelters
V F =V A +V TS
B A V A +B TS V TS =B L V E +B D V D
B A (V E +V D -V TS )+B TS V TS =B L V E +B D V D
B L =B A (1+V D /V E -V TS /V E )+B TS /V E -B D V D /V E
B L =B A (1+V D /V E )-B D V D /V E -(B A -B TS )V TS /V E
B L =B A (1+V D /V E )-B D V D /V E -(B A -B TS )[It/(K TS -g)]V D /V E
If K TS =K A
B L =B A (1+V D /V E )-B D V D /V E
If K TS =I & g=0
B L =B A [1+V D /V E (1-t)]-B D (1-t)V D /V E
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