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The Real Option
Valuation template encompasses a suite of option pricing tools
to quantify the embedded strategic value for a range of
proposed or existing investment scenarios.
Traditional
discounted cash flow investment analysis will only accept an
investment if the returns on the project exceed the hurdle
rate. While this is a worthwhile exercise, it fails to
consider the myriad of strategic options that are associated
with many investments. This template provides the ability to
identify what options might exist in your proposal and the
tools to estimate the quantification of them.
Real Option Valuation Features:
- Ease and flexibility of
input, with embedded help prompts.
- Informative 'Quick Start'
menu for choosing the correct tool for the situation.
- Modified Black Scholes
models to value the options to delay, expand, or abandon
investments.
- Automatic binomial 'tree'
builder model to evaluate complex strategic options with
multiple stages.
- Nash equilibrium Game
Theory model to evaluate market entry strategies in a
competitive environment.
- Ability to predefine
historical investment and/or industry risk profiles to
utilize across models.
Customers who bought the Real Option Valuation template also bought:
- Project Planning and
Management
- Multiple Regression
Analysis and Forecasting
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