The real options application for firm valuation

Hana Scholleová

Ekonomika a Management, 2008, vol. 2008, issue 1

Abstract: Real options as a right of future decision making based on additional information from company external are possible to find everywhere, all of the firms have the flexibility. The flexibility value is result of the DCF methods, but it is necessary calculate also with flexibility value. For its utilizing some selection is needful as the work with real options could bring more use then expense. The first grade of selection is not care for decision at certainty or at risk with zero volatility, where option value is close to zero. The real options give the some answer as classical methods of DCF in case when the decisions making can not be defer Real options are not a new method, but they only enlarge the scale of classical methods, they give possibility to evaluate the firm opportunities.

Keywords: Flexibilita; Flexibility; Reálné opce; Real options; Oceňování podniku; Firm valuation (search for similar items in EconPapers)
JEL-codes: G30 (search for similar items in EconPapers)
Date: 2008
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