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 provided 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 97-2013 for Windows and Excel 2011 or 2004 for Mac as a cross platform real options valuation solution.
» version 3.2 - posted on 2016-09-05
Compatible with Microsoft Excel 2016 for Windows and Mac
» version 1.0 - posted on 2006-12-01
Business Spreadsheets MAKE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, AS TO THE OPERATION OF THIS SOFTWARE OR THE INFORMATION, CONTENT, MATERIALS, OR SERVICES INCLUDED WITHIN IT. YOU EXPRESSLY AGREE THAT YOUR USE OF THIS SOFTWARE IS AT YOUR SOLE RISK. TO THE FULL EXTENT PERMISSIBLE BY APPLICABLE LAW, Business Spreadsheets DISCLAIM ALL WARRANTIES, EXPRESSED OR IMPLIED. Business Spreadsheets DO NOT WARRANT THAT THIS SOFTWARE, ITS SITE, ITS SERVERS, OR E-MAIL SENT FROM ANY OF ITS AFFILIATES ARE FREE OF VIRUSES OR OTHER HARMFUL COMPONENTS. Business Spreadsheets WILL NOT BE LIABLE FOR ANY LOSSES OF ANY KIND ARISING FROM THE USE OF THIS SOFTWARE, INCLUDING, BUT NOT LIMITED TO DIRECT, INDIRECT, INCIDENTAL, PUNITIVE, AND CONSEQUENTIAL LOSSES.
Tell us your experience with Real Options Valuation3.2
RELATED PROGRAMS Our Recommendations
Real Options Valuation TRIAL 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... Download
Employee Stock Options (Lite) FREE Track your employee stock options: - Track multiple stock options. - Get an instant valuation of your options. - Use the Value Predictor to forecast the future value of your options. - Links to latest company financial news. - Built-in help and quick start guide. v1.1.3: Bug fixes Download
LiteTicker FREE Compact application for up-to-date cryptocurrency valuation. Features: - Supports: Litecoin, Bitcoin, Namecoin, Peercoin, and Novacoin - Utilizes BTC-e exchange - Select between valuations in USD, Euro, and GBP - Periodic price refresh options - Completely free with zero advertising Download