Pergunta de entrevista da empresa Stifel Financial

How does deferred tax asset get incorporated into enterprise value?

Resposta da entrevista

Sigiloso

9 de jul. de 2014

A deferred tax asset offsets future tax expenses, thus increasing future free cash flow. As a result, future cash flow inputs in the DCF and enterprise value formulae increase the resultant valuation. Further, higher future cash flows yielded by a deferred tax asset may increase the firm's interest coverage ratio, thus reducing borrowing costs and resulting in a lower discount rate that increases the present value of future cash flows.

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