Title: A Firm Valuation Model Based on Growth Options
Abstract: In this paper, aiming at the existing problems that those traditional Firm valuation methods face with, a new model based on growth options is put forward, as a remedy of the Discounted Cash Flow Method when it treats the operation flexibility. Moreover, using Black-Scholes formula, it values a firm with single growth option, and when a firm has sequential growth options, this paper gives a primary probe by Mente Carlo simulation to value it.
Publication Year: 2003
Publication Date: 2003-01-01
Language: en
Type: article
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Cited By Count: 1
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