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Persistent link: https://www.econbiz.de/10010914700
Applying real options thinking to company valuation seems theoretically and intuitively appealing. However, the real … valuation. We therefore suggest to rework the building blocks of real option applications to corporate valuation.  We introduce …
Persistent link: https://www.econbiz.de/10010999846
reaction options. We also use basic diversification concepts, from portfolio theory, to analyze risk reduction in a unique …
Persistent link: https://www.econbiz.de/10009214343
We apply a contingent-claims technique and demonstrate how to value an emerging market hydro electric power investment under uncertainty. The investment project depends on reliable weather conditions and the capacity of a river to drive the water turbines. Uganda’s Bujagali dam project located...
Persistent link: https://www.econbiz.de/10009493104
people. This review discusses bioeconomic modeling using endogenous risk theory to capture the idea of jointly determined …, valuation exercises will involve eliciting preferences to delay in the inevitable invasion and spread. …
Persistent link: https://www.econbiz.de/10010614181
. Further, we evaluate if growth options are presents through the valuation model of the new companies (Béghin-Say, Cerestar …
Persistent link: https://www.econbiz.de/10005111143
This article attempts to demonstrate that Internet venture valuations are not subject to different valuation standards … and rules, even though one needs to expand on the traditional valuation approach to make it applicable to internet … valuations. It is shown that traditional valuation methods (such as the discounted cash flows approach) understate value twice …
Persistent link: https://www.econbiz.de/10005459039
The aim of this work consists of pricing a real biotechnology firm that is based on a portfolio of several drug development projects at different phases. Duffie and Singleton (1999) formulate a system of n correlated jump mean-reverting intensity equations to capture a portfolio of n entities’...
Persistent link: https://www.econbiz.de/10005621625
see that DCF valuation suggests that the licenses were overvalued while Real Options methodology suggests that the … licenses were undervalued. The report discusses the reasons for differences between real option valuation and DCF valuation of …
Persistent link: https://www.econbiz.de/10009147608
There exists an abysm between market prices and traditional valuation approaches such as Discounted Cash Flows (DCF), a … foothold into the valuation world.Building on the DCF approach yet going further in the sense of incorporating flexibility in … management investment decisions, and taking advantage of the advances in option pricing theory, the real options approach (ROA …
Persistent link: https://www.econbiz.de/10011171468