Real options valuation

• Intro to Real Option Valuation as a Modelling Problem, Mikael Collan
• The Promise and Peril of Real Options, Prof. Aswath Damodaran, Stern School of Business
• Real Options Tutorial, Prof. Marco Dias, PUC-Rio
• Valuing Real Options: Frequently Made Errors, Prof. Pablo Fernandez, IESE Business School, University of Navarra
• Identifying real options, Prof. Campbell R. Harvey. Duke University, Fuqua School of Business
• An introduction to real options (Investment Analysts Society of Southern Africa), Prof E. Gilbert, University of Cape Town
• Decision Making Under Uncertainty—Real Options to the Rescue?, Prof. Luke Miller & Chan Park, Auburn University
• Real Options Whitepapers and Case-studies, Dr. Jonathan Mun
• Real Options – Introduction, Portfolion Group
• How Do You Assess The Value of A Company's "Real Options"?, Prof. Alfred Rappaport Columbia University and Michael Mauboussin
• Some Important Issues Involving Real Options: An Overview, Gordon Sick and Andrea Gamba (2005).
• Real Power of Real Options, Leslie and Michaels (1997), Keith Leslie and Max Michaels McKinsey Quarterly, 1997 (3) pages 4–22. Cited by Robert Merton in his Nobel Prize Acceptance Speech in 1997. McKinsey classic - Reprinted in McKinsey Anthology 2000 - On Strategy. Cited in McKinsey Anthology 2011 - Have You Tested Your Strategy Lately.

Journals

• Journal of Real Options
• Journal of Real Options and Strategy

Applications

• Evaluating Natural Resource Investments, Michael Brennan and Eduardo Schwartz, UCLA Anderson.
• Applications of option pricing theory to equity valuation, Prof. Aswath Damodaran, Stern School of Business
• Valuing Alternative Market Entry Strategies as "Real-Options", Prof. Daryl G. Waldron, Trinity University, San Antonio, Texas
• Real options in public infrastructures, course materials, Prof. Richard de Neufville, MIT
• Pricing options on film revenue, Don Chance, Eric Hillebrand and Jimmy Hilliard; Using real options to make decisions in the motion picture industry, S. Young, J. Gong, and W. Van der Stede
• Strategic Technology Investment Decisions in Research & Development David Lackner MIT Lean Advancement Initiative
• Enhancing Patent Valuation, Prof. Mikael Collan, LSB
• Patent Damages and Real Options: How Judicial Characterization of Non-Infringing Alternatives Reduces Incentives to Innovate Hausman, Jerry A., Leonard, Gregory K. and J. Gregory Sidak
• Establishing Licensing Rates Through Options Fernando Torres MSc
• Real Options and Energy Management, Ehud Ronn, Valery Kholodnyi, Shannon Burchett and others
• A Real Options Approach to valuing the Risk Transfer in a Multi-Year Procurement Contract. Arnold, Scot, and Marius Vassiliou (2010). Ch. 25 in Thawar T. Arif (ed), Aerospace Technologies Advancements. Zagreb, Croatia: INTECH. ISBN 978-953-7619-96-1
• Real Options, Agency Conflicts, and Financial Policy D. Mauer and S. Sarkar (2001); The Impact of Real Options in Agency Problems G. Siller-Pagaza, G. Otalora, E. Cobas-Flores (2006).
• Stay in School or Start Working? - The Human Capital Investment Decision under Uncertainty and Irreversibility: Natasa Bilkic, Thomas Gries and Margarethe Pilichowski.
• Characteristics of Limited Entry Fisheries and the Option Component of Entry Licenses: Jonathan M. Karpoff, ****. (Land Economics, University of Wisconsin Press, vol. 65(4), pages 386-393.)

Resources

• ROV Spreadsheet Models, Prof. Aswath Damodaran, Stern School of Business
• Real Options Calculator, Prof. Steven T. Hackman, Georgia Institute of Technology
• Real Option Pricing, Nikolai Chuvakhin

Corporate finance and investment banking Capital structure Convertible debt Exchangeable debt Mezzanine debt Pari passu Preferred equity Second lien debt Senior debt Senior secured debt Shareholder loan Stock Subordinated debt Warrant Transactions (terms / conditions) Equity offerings At-the-market offering Book building Bookrunner Corporate spin-off Equity carve-out Follow-on offering Greenshoe Reverse Initial public offering Private placement Public offering Rights issue Seasoned equity offering Secondary market offering Underwriting Mergers and acquisitions Buy side Control premium Demerger Divestment Drag-along right Management due diligence Managerial entrenchment Minority discount Pitch book Pre-emption right Proxy fight Post-merger integration Sell side Shareholder rights plan Special situation Squeeze out Staggered board of directors Stock swap Super-majority amendment Tag-along right Takeover Reverse Tender offer Leverage Debt restructuring Debtor-in-possession financing Financial sponsor Leveraged buyout Leveraged recapitalization High-yield debt Private equity Project finance Valuation Accretion/dilution analysis Adjusted present value Associate company Business valuation Conglomerate discount Cost of capital Weighted average Discounted cash flow Economic Value Added Enterprise value Fairness opinion Financial modeling Free cash flow Free cash flow to equity Market value added Minority interest Modigliani–Miller theorem Net present value Pure play Real options Residual income Stock valuation Sum-of-the-parts analysis Tax shield Terminal value Valuation using multiples List of investment banks Outline of finance