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Real Option Valuation


Evaluation of critical & complex business strategy decisions

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


 
 
The Real Option Valuation template encompasses a suite of option pricing tools to quantify the embedded strategic value for a range of proposed or existing 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. This template provides the ability to identify what options might exist in your proposal and the tools to estimate the quantification of them.

Key features of the Real Option Valuation template include:
  • Ease and flexibility of input, with embedded help prompts.
  • Informative 'Quick Start' menu for choosing the correct tool for the situation.
  • Modified Black Scholes models to value the options to delay, expand, or abandon investments.
  • Automatic binomial 'tree' builder model to evaluate complex strategic options with multiple stages.
  • Nash equilibrium Game Theory model to evaluate market entry strategies in a competitive environment.
  • Ability to predefine historical investment and/or industry risk profiles to utilize across models.
Requirements
Windows: Excel 97-2010
Mac OS X: Excel 2004
(US $26.00)
Secure Processing
Customers who bought the Real Option Valuation template also bought:
Project Planning and Management, Multiple Regression Analysis and Forecasting
Find more Excel Option Valuation Solutions in the Business Finance Section of the Excel Templates & Add-ins Directory. Sell the Real Option Valuation template as an affiliate.
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