Company Valuation under Risk and Flexibility

Yixuan Huang

Diplomová práce

Anotace:

The main goal of the diploma thesis is to estimate the value of Estee Lauder Companies under flexibility and risk by mainly using the real options method. It is well known that the equity value of a firm is usually dynamic in making investments with risk. And we should identify that the movement of the equity value is a random process. Real options have been very useful in analyzing firms that were occupied in research and development with significant amounts of managerial flexibility under significant amounts of uncertainty. The valuation of a company can help investors make better investment decisions and help the company’s management know the company's strengths and weaknesses to make specific and accurate planning.

Abstract:

The main goal of the diploma thesis is to estimate the value of Estee Lauder Companies under flexibility and risk by mainly using the real options method. It is well known that the equity value of a firm is usually dynamic in making investments with risk. And we should identify that the movement of the equity value is a random process. Real options have been very useful in analyzing firms that were occupied in research and development with significant amounts of managerial flexibility under significant amounts of uncertainty. The valuation of a company can help investors make better investment decisions and help the company’s management know the company's strengths and weaknesses to make specific and accurate planning.

Klíčová slova

valuation, uncertainty, risk, real options, Monte Carlo simulaation

Keywords

valuation, uncertainty, risk, real options, Monte Carlo simulaation

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 22. 4. 2022

Obhajoba závěrečné práce

• Obhajoba proběhla 23. 5. 2022
• Vedoucí: Miroslav Čulík
• Oponent: Zdeněk Zmeškal

VŠB – Technická univerzita Ostrava

Ekonomická fakulta

Magisterský studijní program:
Finance