Icon of program: Real Options Valuation

Real Options Valuation for Windows

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Editors’ Review

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The Real Option Valuation template quantifies strategic value for investments. It offers various option pricing models, including Black-Scholes and binomial trees, to analyze scenarios like delaying, expanding, or abandoning projects. It also evaluates market entry strategies.

  • Pros

    • Combines multiple option pricing tools.
    • Utilizes Modified Black-Scholes for delay, expand, abandon options.
    • Includes unlimited branch binomial tree builder model.
    • Nash equilibrium Game Theory model for competitive market entry.
    • Cross-platform compatibility with multiple Excel versions.

  • Cons

    • Requires Microsoft Excel for operation.
    • Lacks a dedicated standalone application interface.
    • Does not explicitly perform traditional DCF analysis.
    • No mention of direct external database integration.
    • No web-based or cloud-based functionality mentioned.
Icon of program: Real Options Valuation

Real Options Valuation for Windows

Download now

Used Real Options Valuation for Windows?

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Full Specifications

GENERAL
Release
Latest update
Version
3.1
OPERATING SYSTEMS
Platform
Windows
Operating System
  • Windows NT
  • Windows 2003
  • Windows XP
  • Windows 8
  • Windows 7
  • Windows 98
  • Windows 10
  • Windows Vista
  • Windows Server
  • Windows ME
  • Windows 2000
Additional Requirements
Microsoft Excel 97 or higher
POPULARITY
Total Downloads
2,630
Downloads Last Week
9
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Developer’s Description

By Business Spreadsheets
Quantify the embedded strategic value for a range of investment scenarios.
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 provide 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 97-2016 for Windows and Excel 2016, 2011 or 2004 for Mac as a cross platform real options valuation solution.
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