Real Options Valuation

Real Options Valuation 3

Valuation of real options for business investment proposals and projects via quantification of strategic options.

PROS

  • Model selection tool quickly identifies the correct analysis to undertake based on investment strategy options.

CONS

  • Requires Microsoft Excel 97 or higher.

Valuation of real options for business investment proposals and projects via quantification of strategic options.

The Real Options Valuation model comprises a collection of option pricing tools to quantify the embedded strategic value for a range of financial analysis and 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. The Real Options Valuation program provides the tools to quantify these options and capitalize from the underlying opportunities.

Real option valuation combines modified Black-Scholes, binomial and Nash equilibrium game theory option valuation models.

The Real Options Valuation model encompasses a suite of option pricing tools to quantify the embedded strategic value for a range of financial analysis and investment scenarios. Option pricing tools include Black-Scholes, Binomial, and Game Theory.

Real Options Valuation

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Real Options Valuation 3