Die Fehlbewertung durch das Stuttgarter Verfahren – eine Sensitivitätsanalyseder Werttreiber von Steuer- und Marktwerten

This paper focuses on firm valuation for tax purposes of non-listed companyshares and its sensitivity towards different market conditions. Since the value of a privatecompany cannot be observed on the stock market the value has to be estimated. Due touncertainty, expected future profits may not serve as a tax base. Therefore, in Germany e.g., atax value is derived on the basis of a combination of net assets and historic profits – the socalled Stuttgart Method. A Discounted Cash Flow Model, as a generally accepted method offirm valuation, is used as a proxy for the market value. In this analysis a simulation quantifiesthe gap between both approaches for firms of six different industries. Thereby, we find outwhich industries are discriminated and which are subsidized by taxation. Furthermore, thesensitivity of the value gap with regard to the relevant value drivers (cost of capital, financialstructure, corporate tax rates, growth, and timing effects) is investigated. In the basic settingthe value is only 31,3% to 92,4% of the market value. Thus, tax values lead to a severeundervaluation of the company. Moreover, the span of the relations shows that the firms aretreated unequally. Variations show that overvaluations are also likely to be observed. Theseresults are helpful to design a true and fair tax base.