Valuation of a Company Producing and Trading Seaweed for Human Consumption: Classical Methods vs. Real Options

Raisa Pérez-Vas, Félix Puime Guillén and Joaquín Enríquez-Díaz
Additional contact information
Raisa Pérez-Vas: Faculty of Economics and Business, IC2-ECOBAS, Universidade de Vigo, Lagoas-Marcosende s/n, 36310 Vigo, Spain
Félix Puime Guillén: Faculty of Economics and Business, University of A Coruña, 15008 A Coruña, Spain
Joaquín Enríquez-Díaz: Faculty of Economics and Business, University of A Coruña, 15008 A Coruña, Spain

IJERPH, 2021, vol. 18, issue 10, 1-13

Abstract: Aquaculture is an increasingly relevant sector in the exploitation of natural resources; therefore, it is appropriate to propose various models that include the fundamental variables for its economic-financial valuation from a business point of view. The objective of this paper is to analyze different models for the valuation of investment projects in a company in the aquaculture sector in order to conclude whether there is a model that represents a better valuation. Therefore, in this study, four valuation models have been applied, three classical models (net present value, internal rate of return, and payback) and a more recent model, real options (RO) for a company producing and marketing seaweed in Galicia (region located in the northwest of Spain). The results obtained, RO (€5,527,144.04) and net present value (€5,479,659.19), conclude that the RO model estimates a higher added value by taking into account in its calculations the flexibility given by the expansion option. Future lines of research include the application of valuation models that have been applied to companies belonging to the same sector in order to compare whether the results found are similar.

Keywords: discount cash-flow; real options; aquaculture; human consumption (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1660-4601/18/10/5262/pdf (application/pdf)
https://www.mdpi.com/1660-4601/18/10/5262/ (text/html)

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:gam:jijerp:v:18:y:2021:i:10:p:5262-:d:555146

Access Statistics for this article

IJERPH is currently edited by Ms. Jenna Liu

More articles in IJERPH from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().