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EBIT-Vollausschüttung und DCF-WACC-Bewertung?

Author

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  • Bernhard Schwetzler

    (Handelshochschule Leipzig (HHL))

Abstract

Summary In a recent article Peter Nippel and Felix Streitferdt make the case for a full distribution of the EBIT and the NOPLAT in a DCF valuation model. This note argues that this assumption contradicts the basic idea of DCF models that free cash flows are relevant. Furthermore, this note will point out that this assumption causes some problems in their DCF model. Especially, the correction of the WACC proposed by the authors leads to cost of capital that depend on the growth and the retention rate of the firm to be valued, thus serving no longer as a risk equivalent opportunity cost for corporate valuation.

Suggested Citation

  • Bernhard Schwetzler, 2005. "EBIT-Vollausschüttung und DCF-WACC-Bewertung?," Schmalenbach Journal of Business Research, Springer, vol. 57(2), pages 155-162, March.
    • Handle: RePEc:spr:sjobre:v:57:y:2005:i:2:d:10.1007_bf03371631
    DOI: 10.1007/BF03371631
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    More about this item

    Keywords

    G12; G31; G32;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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