Real Option Valuation in Service Industries

  • Authors
  • Jürgen Müller

Part of the Gabler Edition Wissenschaft book series (GEW)

Table of contents

  1. Front Matter
    Pages I-XXV
  2. Jürgen Müller
    Pages 1-9
  3. Jürgen Müller
    Pages 37-106
  4. Jürgen Müller
    Pages 219-221
  5. Back Matter
    Pages 223-267

About this book

Introduction

Uncertainty is the greatest risk management faces, but it also provides enormous opportunities for value creation. Basing strategic decisions on theoretically rigorous analysis is therefore vital to long-term corporate success in an uncertain and changing marketplace. The real option approach is the tool to integrate the values of flexibility and uncertainty into capital budgeting. Jürgen Müller applies the real option approach to service industries, in this case to retail banking; he provides empirical support for the approach and simplifies the applicability of real option concepts in corporate practice. Based on a case study of the Polish retail banking market, the author develops and illustrates a simplified approach to real option valuation based on the binomial option pricing model.

Keywords

Banking Cash Flow Evaluation Investition Investment Rating Retail Banking

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-322-99299-4
  • Copyright Information Gabler Verlag | Springer Fachmedien Wiesbaden GmbH, Wiesbaden 2000
  • Publisher Name Deutscher Universitätsverlag, Wiesbaden
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-8244-7138-6
  • Online ISBN 978-3-322-99299-4
  • About this book
Industry Sectors
Pharma
Automotive
Chemical Manufacturing
Biotechnology
Consumer Packaged Goods