Real Options: Another Way To Value Internet Initiatives
Related Articles
- Estimation of risk-return for real estate investments by applying Ellwood's Model and Real Options Analysis: An application to the residential real estate market of Naples. Vincenzo Del Giudice; Alfredo Passeri; Pierfrancesco De Paola; Francesca Torrieri // Applied Mechanics & Materials;2014, Issue 651-653, p1570
In the present study was developed an application of a model derived from Ellwood's financial analysis and Real Options Analysis for estimating the risk-return in the residential real estate market of Naples. With the aim of reducing the uncertainty related to the determination of the risk and...
- Real Option Valuation of a Pharmaceutical Company. Banerjee, Ashok // Vikalpa: The Journal for Decision Makers;Apr-Jun2003, Vol. 28 Issue 2, p61
Valuing a research-driven firm is a challenging task. The static discounted cash flow (DCF) model fails to capture the value of R&D options. Pharmaceutical companies are, by their very nature, dependent on research products. These companies face an uncertain business environment. Roughly, one...
- Real options for biotechnology valuation. Harrison, Michael; Lerer, Leonard // Nature Biotechnology;Mar2002, Vol. 20 Issue 3, p223
Explores the real options for biotechnology valuation. Use of point estimates of future revenues and market share; Option-pricing model.
- DO INVESTORS APPLY REAL OPTION THINKING IN VALUATING CORPORATE ASSETS? EVIDENCE FROM NEW PRODUCT DEVELOPMENT PROJECTS. Chengru Hu; Biqing Huang; Foley, Maggie // Journal of International Finance & Economics;2011, Vol. 11 Issue 2, p52
This study is a direct test of the implication of real option theory. Real option theory suggests strategic flexibilities inherited or built into corporate assets enable firms to gain from both market and asset specific fluctuations. We examine this implication on the valuation of corporate...
- THE BUSINESS UNCERTAINTY AND VARIABILITY MANAGEMENT WITH REAL OPTIONS MODELS COMBINED TWO-DIMENSIONAL SIMULATION. TARNÓCZI, TIBOR; FENYVES, VERONIKA; BÁCS, ZOLTÁN // International Journal of Management Cases;Sep2011, Vol. 13 Issue 3, p159
Within any firm, there are multiple short- and long-term goals along the path of value creation and maximization. In general, there are three approaches to corporate valuation (discounted cash flow, relative and contingent claim valuation). The paper presents a model developed by us what is a...
- VALUATION OF MINING COMPANIES. Zuzik, Jozef; Weiss, Roland; Gašinec, Juraj; Laskovský, Vlastislav // Proceedings of the International Multidisciplinary Scientific Ge;2016, Vol. 2, p995
The prediction of the value of a mining company is a complex matter. Various methods are available to estimate a company's value but many are not useful in mining industry because of its specific nature. Traditional methods such as Discounted Cash Flow, Relative Multiples or Real Options cannot...
- Capabilities as Real Options. Kogut, Bruce; Kulatilaka, Nalin // Organization Science;Nov/Dec2001, Vol. 12 Issue 6, p744
Strategy research consists of a balance between positive and normative theory. Normative theories suggest particular heuristics, or cognitive representations, to find appropriate solutions. Heuristics permit faster solutions to real-time problems; they also suffer from the potential of negative...
- Opções reais e teoria dos jogos como ferramentas combinadas para avaliar e comparar opções exclusivas e comuns de empresas em mercados duopolistas. da Silva Rocha, André Barreira // Revista de Economia e Administração;jan-mar2005, Vol. 4 Issue 1, p1
Several papers on real options assume that the firm being evaluated has an exclusive right to the options. However, in many industries, the effect of competition can not be ignored and, additionally, the competitors own the same kind of options, transforming them in shared options. This paper...
- KEEP YOUR OPTIONS OPEN. VAN DER BURG, JOHN // Chartered Accountants Journal;Mar2014, Vol. 93 Issue 2, p44
The article discusses optionality as a cornerstone of valuing business, and its relevance to financial practitioners. Particular focus is given to the similarities of optionality with financial options, and the definition of optionality based on the book "Antifragile" by statistician Nassim...
