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When Valuation Considers 'Real Options.'

Authors :
Levinsohn, Alan
Source :
Strategic Finance. Jun2001, Vol. 82 Issue 12, p79-80. 2p.
Publication Year :
2001

Abstract

The article discusses real options analysis for valuations of corporate finances. The article comments that the discounted-cash-flow (DCF) approach and the net-present-value (NPV) method undervalue assets and potential projects. The benefits of using real options analysis when considering small, potentially high growth companies and any internal company project is discussed. Resources for real options analysis are provided.

Details

Language :
English
ISSN :
1524833X
Volume :
82
Issue :
12
Database :
Academic Search Index
Journal :
Strategic Finance
Publication Type :
Periodical
Accession number :
4540420