This short article tries to demonstrate how we can use option pricing theory to value the equity of a company.
The valuation of the equity of a firm in trouble (i.e. one that has large losses and/or a large debt load) can be a very challenging exercise.
So can be the valuation of a new company, a start-up, which is likely to derive the vast amount of its value from the “rights” to a bright idea (e.g. a patent) or a new innovative service. Furthermore, valuation of natural resources companies also pose similar challenges.
How to value you company with the option pricing theory
Posted by MashaKaran under StartupsFrom http://www.alphagamma.eu 3048 days ago
Who Voted for this Story
Subscribe
“Martin, I am not that far along yet. When I do get to live-streaming, I am...”
“Peter: I have to check out your post. Where in Sweden are you located?
All...”
“Robert: Have you tested live-streaming and then saving the session as a...”
“Lisa: Thanks for sharing this information. I have not used Grok so much...”
“Adam: I have to re-read the post and see if it is time to start another...”
Comments