Correctly Discounting the Terminal Value
June 4, 2025
6:46 am
When valuing companies using discounted cash flows (DCF), accuracy is crucial—especially when discounting the Terminal Value (TV).
Table of Contents
In an increasingly volatile and crisis-prone world, traditional deterministic management planning is reaching its limits. Target-value-oriented planning systematically ignores risks and uncertainties, which has significant consequences for the management, monitoring, and valuation of companies.
With the Practical Handbook on Expectation-Consistent Planning, the first practical guide is being published that shows how expectation-consistent, risk-integrated future performance planning is implemented in practice.
The focus is on translating a management plan into an expectation-value-based plan that is methodologically consistent and meets increased regulatory requirements.
🔍 What readers can expect:
– Derivation of expectation-consistent planning values from the requirements of IDW ES 1, as they underpin the value concepts of the objectified enterprise value and the plausibilised decision value.
– Classification of expectation-consistent planning within the legal framework for risk and crisis early detection, as required by Sections 91 and 93 of the German Stock Corporation Act (AktG) and Section 1 of the StaRUG.
– Case study showing how, in practice—especially in the SME sector—existing plans are identified and step by step converted into expectation-consistent planning values.
– An approach that not only explains why expectation-consistent planning is necessary, but also how it can be applied in practice.
🎯 Target audience
- Executive boards and managing directors
- Supervisory boards
- Controllers
- Risk managers
- Business valuers
- Auditors
…. and anyone who understands corporate planning as a robust basis for decisions, valuations, and oversight.
A book for everyone who wants to rethink planning: away from target values, towards expected values—sound, practical, and implementable.
The practical handbook was prepared by Professors Dietmar Ernst, Joachim Häcker and auditor Sebastian Schmitz, and is used as a case study in the MBA Applied Quantitative Finance.
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May 28, 2025
11:32 pm
Small and medium-sized enterprises (SMEs) are the backbone of the German economy – yet when it comes to their valuation, practice often misses the mark…
Fundamentals of Corporate Finance
May 26, 2025
8:20 am
The long-awaited 12th edition of the standard work “Fundamentals of Corporate Finance” will be released mid-year.
Portfolio Management | 2nd Edition
May 23, 2025
1:00 pm
In an increasingly volatile economic environment, systematic portfolio management is gaining more importance than ever.
Applications for the 2025/26 winter semester are now open
March 27, 2025
11:09 am
The starting signal has been given: From now on, you can apply for the limited places on the MBA Applied Quantitative Finance for the 2025/26 winter semester!
Derivatives – An Introduction to the World of Financial Products
March 27, 2025
10:38 am
No fear of derivatives – an easy introduction to the world of financial products
