Real Options Valuation

Quantify the embedded strategic value for a range of investment scenarios.
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Real Options Valuation Ranking & Summary

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  • Rating:
  • License:
  • Free to try
  • Price:
  • Free to try
  • Publisher Name:
  • By Business Spreadsheets
  • Publisher web site:
  • Operating Systems:
  • Windows 10, Windows 2003, Windows Vista, Windows 98, Windows Me, Windows, Windows NT, Windows 2000, Windows 8, Windows Server 2008, Windows 7, Windows XP
  • Additional Requirements:
  • Microsoft Excel 97 or higher
  • Total Downloads:
  • 2601

Real Options Valuation Tags


Real Options Valuation Description

The Real Option Valuation template combines a set of option pricing tools to quantify the embedded strategic value for a range of financial analysis and investment scenarios. Traditional discounted cash flow investment analysis will only accept an investment if the returns on the project exceed the hurdle cost of capital rate. This is a worthwhile exercise as input for valuing real options; however it ignores any strategic options that are commonly associated with many investment decisions. Real option valuation provides the ability to identify what options might exist in a business proposal and the tools to estimate the quantification of them. The real option valuation template combines ease and flexibility of input with embedded help prompts to assist with selecting the correct option valuation model for the investment decision. Modified Black Scholes option pricing models are provide to value the options to delay, expand or abandon proposed of existing business streams or investments. An unlimited branch binomial tree builder model can be employed to evaluate complex strategic options with multiple stages. The Nash equilibrium Game Theory option model evaluates market entry strategies in a competitive environment with clear results on whether to lead, follow or enter the market simultaneously with competitors. Historical investment and/or industry risk profiles can be utilized across real option valuation models as a proxy of risk for the analyzed investment. The Real Option Valuation template is compatible with Excel 97-2016 for Windows and Excel 2016, 2011 or 2004 for Mac as a cross platform real options valuation solution.


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