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.





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Share your small business tips with the community!
Share your small business tips with the community!
Share your small business tips with the community!
Share your small business tips with the community!