Real options valuation risk case study how to#
Real options valuation risk case study series#

Real options valuation risk case study series#

This executive level course consists of a series of accessible animation videos. I will be your lecturer, and together with my team, Dyaran Bansraj and Nishad Matawlie, we are going to take you on a fascinating journey that may change the way you make strategic investment decisions. Welcome! My name is Han Smit, I am Professor of Corporate Finance at Erasmus School of Economics. This level is challenging, engaging, and compelling to an intellectually rigorous student. This level requires basic knowledge of concepts in corporate finance, e.g., the time value of money, financial statement analysis, capital structure, and the relation between risk and returns. This level involves an understanding of the technical details. This is accessible for time-constrained executives and the general audience without any prior knowledge. This 1-week module provides critical insights into the principles of corporate valuation and strategy. This course is particularly interesting for venture capitalists, private equity investors, investment bankers, CEOs, CFOs, and those who aspire these affiliations. We hope that our course appeals to (graduate) students in finance, economics, and business, as well as to high-ranking professionals and a general audience. The tools we provide can improve your decisions in business and in daily life. Thinking in terms of options, games, and adaptive strategies may help managers address strategic questions such as: How do you value a leveraged buyout? How can you value a high-tech venture with negative cash flows? When should you invest in new ventures in stages? How can you incorporate rival bidders in the analysis? We introduce the expanded NPV, which brings together DCF, real options, and game theory. Our treatment goes far beyond the use of standard valuation analysis. Yet managers often have to consider these long-term implications using intuition and experience alone, with little guidance from structured, quantitative analysis.

But, in an ever-changing world, strategic decisions determine the firm’s long-term success and market value. Traditionally, we assess the attractiveness of an investment as a mature business, where future cash flows mainly result from past decisions. We will revolutionize your way of decision making, by extending static techniques from corporate finance with dynamic methods to quantify strategic thinking.

Real options valuation risk case study how to#

We present the latest tools and show you how to apply them! Would you like to learn about the latest valuation methods that may help you to make better business decisions? Then 'Advanced Valuation and Strategy – M&A, Private Equity, and Venture Capital' by Erasmus University Rotterdam is the right course for you! This course is helpful for executives that need to value complete strategies and for all students interested in corporate finance and strategy.