Investment and Company Valuation

Part of the Contributions to Management Science book series (MANAGEMENT SC.)


The most relevant concepts of the valuation literature are reviewed in this first chapter of the theoretical framework. First, the background of the relevant conventional valuation approaches is depicted, before the more innovative Real Options Valuation approach and the underlying Option Pricing Theory are summarized. The insights in this chapter provide the financial background for the subsequent design of a framework for valuations in software markets.


Cash Flow Real Option Capital Asset Price Model Managerial Flexibility Exercise Price 
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Copyright information

© Springer-Verlag Berlin Heidelberg 2010

Authors and Affiliations

  1. 1.FrankfurtGermany

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