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Real options valuation
Real options valuation, also often termed real options analysis,[1] (ROV or ROA) applies option valuation techniques to capital budgeting decisions.[2] A real option itself, is the right—but not the obligation—to undertake certain business initiatives, such as deferring, abandoning, expanding, staging, or contracting a capital investment project.[3] For example, real options valuation could examine the opportunity to invest in the expansion of a firm's factory and the alternative option to sell the factory.[4]
- ^ Adam Borison (Stanford University). Real Options Analysis: Where are the Emperor's Clothes?.
- ^ Campbell, R. Harvey. Identifying real options, Duke University, 2002.
- ^ Locatelli, Giorgio; Mancini, Mauro; Lotti, Giovanni (2020-04-15). "A simple-to-implement real options method for the energy sector". Energy. 197: 117226. Bibcode:2020Ene...19717226L. doi:10.1016/j.energy.2020.117226. hdl:11311/1170376. ISSN 0360-5442. S2CID 213872142. Archived from the original on 4 May 2020.
- ^ Nijssen, E. (2014). Entrepreneurial Marketing; an effectual approach. Chapter 2, Routelegde, 2014.
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