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Real Option Valuation

Evaluation of critical & complex business strategy decisions

...Valuing the strategic options embedded in your business proposal.

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The Excel Real Option Valuation template combines several option pricing tools to calculate the strategic value realizable from proposed or existing investment scenarios. Real options valuation differs from the traditional discounted cash flow approach to valuation by quantifying assumptions based on the volatility of underlying cash flows of an investment or business. The Excel Real Option valuation template provides analytical tools based on modified option pricing theory to model alternative investment strategies and estimate the value of undertaking them.

Key features of the Excel Real Option Valuation template include:

Input flow is assisted with information on each option valuation theory and help for interpretation.
The 'Quick Start' menu provides information for choosing the correct real option valuation tool for the investment situation to be analyzed.
A modified Black Scholes option pricing model is available to value the options to delay, expand, or abandon investment projects.
A Binomial option model allows the creation of unlimited binomial option branches to evaluate complex strategic options with multiple critical decision stages.
A Game Theory model based on the Nash equilibrium theory is provided to model leader, follower and simultaneous market entry strategies a competitive environment.
Categorized investment and/or industry risk profiles are provided and can be modified to utilize across real option models as a proxy for risk assumptions.


Requirements Windows: Excel 97-2010 Mac OS X: Excel 2004 or 2011	(US $26.00) Secure Processing

Customers who bought the Excel Real Option Valuation template also bought: Project Planning and Management, Multiple Regression Analysis and Forecasting
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