REAL OPTIONS COMPARED TO TRADITIONAL COMPANY VALUATION METHODS: POSSIBILITIES AND CONSTRAINTS IN THEIR USE

Ulyana Dzyuma
Additional contact information
Ulyana Dzyuma: University of Information Technology and Management in Rzeszow

Financial Internet Quarterly, 2012, vol. 8, issue 2, 51-68

Abstract: The subject of the article is the presentation of an unconventional method of establishing the value of the company together with investment ventures – basing on the concept of real options (Real Option Valuation – ROV). The option calculation can be applied in many areas, such as: evaluation of investment effectiveness, valuation of the company and its separate parts, estimating the value of company assets and liabilities, credit risk assessment. The concept of real options is very popular all over the world. However, in Poland we rarely use option methods in the above areas, although the method is currently considered a revolutionary solution to the problem of underassessment of huge risk projects.

Keywords: real options; company valuation methods; binomial model; Black-Scholes model (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.wsiz.edu.pl/fiq/article/view/827 Abstract page (text/html)
https://journals.wsiz.edu.pl/fiq/article/download/827/783 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsz:fiq000:v:8:y:2012:i:2:id:827

DOI: 10.65748/fiqf-2012-0016

Access Statistics for this article

More articles in Financial Internet Quarterly from University of Information Technology and Management in Rzeszów
Bibliographic data for series maintained by Wiesław Stręciwilk ().