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Valuation of Corporate Growth Opportunities : A Real Options Approach - Richard E. Ottoo

Valuation of Corporate Growth Opportunities

A Real Options Approach

Hardcover

Published: 8th June 2000
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How can we value an enterprise, like a young internet start-up company, that has no earnings or cash flows, so that traditional and conventional valuation techniques are therefore not applicable? One of the most notable recent industrial revolutions has been the emergence of Biotechnology and Internet companies. Most of these technology companies are predominantly young with no history of earnings or cash flows to evaluate. This book addresses the problem, and presents a model for valuing enterprises that may have no existing assets but only growth opportunities.

List of Tables
List of Figures
Growth Opportunities: An Overview
Introduction
Growth Opportunities
Financing Constraints
Basic Approaches to Valuation
Conclusion
The Valuation Model
Investment Decision
Production Decision
Marketing Decision
Overall Value of Corporate Growth Opportunities
Conclusion
Comparative Static Analysis
Introduction
Choice of the Level of RD
Growth Value in the Case of a Monopoly
Growth Value in the Case of Collusion
Value of Growth Opportunities with RD
Value of Growth Opportunities with Rival RD
Growth Opportunities with Size of Innovation Rents
Growth Opportunities with Strike Price
The Impact of R&D on the Expected Time of Discovery
Growth Opportunities with the Expected Time of Innovation
Growth Opportunities with the Return on the Hedge Portfolio
Conclusion
Scenario Analysis: A Case Study of a Biotechnology Company
Company Background
Market Trend
Industry Competition
Risks
Investment Analysis
Financing a Growth Project: A Binomal Approach
Introduction
Operating Flexibility
Financing Flexibility
The Project
The Binomial Framework
Conclusion
Empirical Analysis Data Sources and Empirical Design
Empirical Results
The Fama-French Methodology
Conclusion
Summary, Problems and Future Research
Summary
Determining Parameter Values
Data and Sample Selection Problems
Future Research
Concluding Remarks
Bibliography
Index
Table of Contents provided by Publisher. All Rights Reserved.

ISBN: 9780815337836
ISBN-10: 0815337833
Series: Garland Studies on the Financial Sector
Audience: Professional
Format: Hardcover
Language: English
Number Of Pages: 100
Published: 8th June 2000
Publisher: GARLAND PUB
Country of Publication: US
Dimensions (cm): 22.3 x 14.78  x 1.78
Weight (kg): 0.4
Edition Number: 1