The Progress on Real Options for Company Valuation
- 10.2991/assehr.k.211209.440How to use a DOI?
- Real option method; BS model; Asset pricing
Nowadays, real options derived from financial options are increasingly used in asset pricing. However, with different business models varied by companies, the existing real option pricing models are unable to be generally adopted. This paper addresses the problem of asset pricing under the impact of potential factors and discusses the path to carry out fair asset pricing with various business models. For the purpose of exploring the pricing method of using real options for asset pricing in practice, the article researches and sorts out the existing literature based on information retrieval. The applicability of real options, real options pricing models, parameter estimations, and the difficulties and problems during the application are systematically analyzed. Subsequently, the future research outlook and guideline are proposed.
These results shed light for a more accurate and practical company valuation provided by real option pricing methodology compared with the DCF method
- © 2021 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Yixuan Chen PY - 2021 DA - 2021/12/15 TI - The Progress on Real Options for Company Valuation BT - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021) PB - Atlantis Press SP - 2704 EP - 2711 SN - 2352-5428 UR - https://doi.org/10.2991/assehr.k.211209.440 DO - 10.2991/assehr.k.211209.440 ID - Chen2021 ER -