The simulation-based company valuation values a company on the basis of the risks actually present in the company without having to derive them from the capital market data. The simulation-based company valuation takes into account the market imperfections, such as the probability of insolvency...

Market imperfections call into question the suitability of the CAPM for deriving the cost of capital. The valuation by incomplete replication introduces a valuation concept that takes capital market imperfections into account and derives the risk-adjusted cost of capital (or risk discounts) on...

Simulation-based planning and business valuation are currently intensively discussed topics. As an alternative to the CAPM, simulation-based business valuation solves a variety of problems that enable business valuation in imperfect markets. Simulation-based business valuation is attracting...