Real Options Theory

Real Options Theory
Author: Jeffrey J. Reuer
Publisher: Emerald Group Publishing
Total Pages: 520
Release: 2007-07-05
Genre: Business & Economics
ISBN: 1849504946

Examines the ways in which real options theory can contribute to strategic management. This volume offers conceptual pieces that trace out pathways for the theory to move forward and presents research on the implications of real options for strategic investment, organization, and firm performance.

Project Valuation Using Real Options

Project Valuation Using Real Options
Author: Prasad Kodukula
Publisher: J. Ross Publishing
Total Pages: 256
Release: 2006-07-15
Genre: Business & Economics
ISBN: 9781932159431

Business leaders are frequently faced with investment decisions on new and ongoing projects. The challenge lies in deciding what projects to choose, expand, contract, defer, or abandon, and which method of valuation to use is the key tool in the process. This title presents a step-by-step, practical approach to real options valuation to make it easily understandable by practitioners as well as senior management. This systematic approach to project valuation helps you minimize upfront investment risks, exercise flexibility in decision making, and maximize the returns. Whereas the traditional decision tools such as discounted cash flow/net present value (DCF/NPV) analysis assume a “fixed” path ahead, real options analysis offers more flexible strategies. Considered one of the greatest innovations of modern finance, the real options approach is based on Nobel-prize winning work by three MIT economists, Fischer Black, Robert Merton, and Myron Scholes.

Valuation

Valuation
Author: Rajesh Kumar
Publisher: Academic Press
Total Pages: 519
Release: 2015-11-05
Genre: Business & Economics
ISBN: 0128025433

Valuation: Theories and Concepts provides an understanding on how to value companies that employ non-standard accounting procedures, particularly companies in emerging markets and those that require a wider variety of options than standard texts provide. The book offers a broader, more holistic perspective that is perfectly suited to companies and worldwide markets. By emphasizing cases on valuation, including mergers and acquisition valuation, it responds to the growing expectation that students and professionals must generate comprehensive perspectives based on thorough investigations and a library of valuation theories. Readers will gain a better understanding of the development of complete analyses, including trend analysis of financial parameters, ratio analysis, and differing perspectives on valuation and strategic initiatives. Case studies include stock market performance and synergies and the intrinsic value of the firm are compared with offer price. In addition, full data sets for each chapter are available online. - Provides an understanding on how to value companies that employ non-standard accounting procedures, particularly companies in emerging markets - Gives readers the ability to compare the intrinsic value of the firm with the offer price - Showcases a variety of valuation techniques and provides details about handling each part of the valuation process - Each case has data in excel spreadsheets for all companies, and data sets for each chapter are available online

Real Options in Practice

Real Options in Practice
Author: Marion A. Brach
Publisher: John Wiley & Sons
Total Pages: 384
Release: 2003-04-07
Genre: Business & Economics
ISBN: 0471445568

Explores real option theory applied in practice Real options are quickly becoming the valuation and decision-making method of choice for many companies, including oil and gas companies, utilities and natural resource companies, pharmaceutical and biotech companies, Internet companies, and many others. Real Options in Practice allows readers to view the world of real options from the vantage point of a corporate practitioner applying real option valuation techniques on a regular basis. Expert Marion Brach describes the challenges of implementing a real option framework in practice within a corporate setting. Touching on the real options most firms care about, Real Options in Practice identifies the classic types of real options-deferral, abandonment, switching, expansion, and compound-and explores the main concepts critical to understanding real option theory. Through Brach's own three-step real option valuation method readers will learn how the theory of real options is now being applied to drive better, more profitable corporate decision-making. Marion A. Brach, MD, MBA (Hagen, Germany), has undertaken financial valuation of business opportunities and acquisitions using scenario and real option valuation in the biotech industry. A recognized expert on real option theory and practice, Brach received her MBA from the Manchester Business School and frequently speaks at real option seminars.

Valuation Approaches and Metrics

Valuation Approaches and Metrics
Author: Aswath Damodaran
Publisher: Now Publishers Inc
Total Pages: 102
Release: 2005
Genre: Business & Economics
ISBN: 1601980140

Valuation lies at the heart of much of what we do in finance, whether it is the study of market efficiency and questions about corporate governance or the comparison of different investment decision rules in capital budgeting. In this paper, we consider the theory and evidence on valuation approaches. We begin by surveying the literature on discounted cash flow valuation models, ranging from the first mentions of the dividend discount model to value stocks to the use of excess return models in more recent years. In the second part of the paper, we examine relative valuation models and, in particular, the use of multiples and comparables in valuation and evaluate whether relative valuation models yield more or less precise estimates of value than discounted cash flow models. In the final part of the paper, we set the stage for further research in valuation by noting the estimation challenges we face as companies globalize and become exposed to risk in multiple countries.

Valuation

Valuation
Author: Kenneth R. Ferris
Publisher: FT Press
Total Pages: 256
Release: 2002
Genre: Consolidation and merger of corporations
ISBN: 9780130348043

In "Valuation: Avoiding the Winner's Curse," authors Kenneth R. Ferris and Barbara S. Pecherot Petitt will help you master both the science and the art of M&A valuation. Concise, realistic, and easy to use, it brings together the field's best "rules of thumb," compares every leading traditional and alternative approach, presents examples and case studies from many industries, and offers practical solutions for today's key accounting, reporting, and tax-related challenges.

Contemporary and Emerging Issues on the Law of Damages and Valuation in International Investment Arbitration

Contemporary and Emerging Issues on the Law of Damages and Valuation in International Investment Arbitration
Author: Christina L. Beharry
Publisher: BRILL
Total Pages: 516
Release: 2018-04-03
Genre: Law
ISBN: 9004357793

Damages and other forms of redress are the object of nearly every international investment dispute. Given the financial stakes in these cases, compensation is a key concern for both foreign investors and States. The increasingly large sums awarded and the growing complexity of claims call for a renewed analysis of legal and valuation concepts related to damages. Contemporary and Emerging Issues on the Law of Damages and Valuation in International Investment Arbitration, edited by Christina L. Beharry, examines a broad range of damages topics, building on basic principles and surveying current developments to identify trends in the jurisprudence. A central contribution of this book is its exploration of cutting-edge issues dominating a new generation of investment awards and the interconnectedness of damages with other areas of international investment law. This volume brings together leading practitioners, experts, and academics with extensive experience working on issues related to the law of damages and the quantification of compensation. Readers are provided with a deeper understanding of legal and valuation principles that are often the source of intense debate in international investment cases.

Applied Corporate Finance

Applied Corporate Finance
Author: Aswath Damodaran
Publisher: John Wiley & Sons
Total Pages: 663
Release: 2014-10-27
Genre: Business & Economics
ISBN: 1118808932

Aswath Damodaran, distinguished author, Professor of Finance, and David Margolis, Teaching Fellow at the NYU Stern School of Business, has delivered the newest edition of Applied Corporate Finance. This readable text provides the practical advice students and practitioners need rather than a sole concentration on debate theory, assumptions, or models. Like no other text of its kind, Applied Corporate Finance, 4th Edition applies corporate finance to real companies. It now contains six real-world core companies to study and follow. Business decisions are classified for students into three groups: investment, financing, and dividend decisions.

Investment Valuation

Investment Valuation
Author: Aswath Damodaran
Publisher: John Wiley & Sons
Total Pages: 1014
Release: 2002-01-31
Genre: Business & Economics
ISBN: 9780471414902

Valuation is a topic that is extensively covered in business degree programs throughout the country. Damodaran's revisions to "Investment Valuation" are an addition to the needs of these programs.