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Applications of ROA to Value a Dotcom Start-up and a Professional Basketball player
Mälardalen University, School of Sustainable Development of Society and Technology.
Mälardalen University, School of Education, Culture and Communication.
2012 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This paper attempts to evaluate a dotcom start-up company and a professional young basketball player using Real Option Analysis in the investors’ points of view. That is, we are standing in the financers’ shoes and valuing both cases if they are worth investing in. We believe that real option analysis is the most appropriate valuation method from our current knowledge compared to other traditional valuation methods notably like the Net Present Value (NPV), therefore we try to prove that using both qualitative and quantitative descriptions. The authors concentrate more on applying quantitative methods than giving detailed definitions of real options. Binomial Pricing Model and Monte Carlo simulation with the help of MS Excel and MATLAB were used in the evaluation. The paper consists of two case studies, each tackled differently but both summarized up all together. The paper concludes with a table exhibiting when real options are valuable and a belief that game theory is essential in ROA.

Place, publisher, year, edition, pages
2012. , 37 p.
Keyword [en]
Real Options, Project, Uncertainty and flexibility, Traditional DCF or NPV Methods, Volatility, Present Value of Underlying Assets, Monte Carlo Simulation, Binomial Tree Model, Venture Business and Capitalist, Internet Start-up, Jeremy Lin.
National Category
Social Sciences
Identifiers
URN: urn:nbn:se:mdh:diva-14793OAI: oai:DiVA.org:mdh-14793DiVA: diva2:535248
Subject / course
Economics
Presentation
2012-06-07, U2-260, Mälardalens Högskola, Box 883,721 23,Högskola plan 2, VÄSTERÅS, 13:58 (English)
Uppsok
Social and Behavioural Science, Law
Supervisors
Examiners
Projects
Matlab Codes and Simulation&Binary Tree Model(Excel)
Available from: 2012-07-03 Created: 2012-06-19 Last updated: 2012-07-03Bibliographically approved

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fulltext(666 kB)775 downloads
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Type fulltextMimetype application/pdf

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Karungi, Doreen
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School of Sustainable Development of Society and TechnologySchool of Education, Culture and Communication
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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf