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The study presents a current approach to investments evaluation based on the real option theory. Each investment can be materialized through different possibilities, described as real options. It is possible to evaluate the price of real option by utilization of the described model. The real...
Persistent link: https://www.econbiz.de/10005036686
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
prices, are presented. The fourth section examines the two main applications of term structure models: hedging and valuation …
Persistent link: https://www.econbiz.de/10008790066
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 …) has become the alternative to capital budgeting and, lately, to corporate valuation. Empirical evidence shows that ROA …
Persistent link: https://www.econbiz.de/10011171468
the family firm is worth without the family as part of the business. We provide a buyers’ perspective on the valuation of … of the family and whether these effects result in an increased or decreased valuation of family firms. …
Persistent link: https://www.econbiz.de/10011118170
The types of investments a ï¬rm undertakes will depend in part on what it expects the outcome of those investments to reveal about its skills, capabilities, and assets (i.e., its resources). We predict that a ï¬rm will specialize when young, then experiment in a new line of business for some...
Persistent link: https://www.econbiz.de/10011130369
prices, are presented. The fourth section examines the two main applications of term structure models: hedging and valuation …
Persistent link: https://www.econbiz.de/10011166285
This study applies Real Options Theory to banking in the environment of actively traded Philippine Universal Banks. These banks exist in an environment of imperfect information with regard to lending, and a country where credit scarcity impedes the growth and performance of entrepreneurial...
Persistent link: https://www.econbiz.de/10011843701