Portfolio

We provide the following methods for financial valuations of projects, investments, companies and strategic corporate decisions:

Discounted cash flow analysis incl. decision tree analysis

  • Incremental free cash flow analysis
  • Cash flow specific risk-adjusted discount rates acc. to Component Cash Flow Procedure (CCFP)
  • Expected value and variance analysis of cash flows
  • Industry segment, company, project and cash flow specific WACC, betas and discount rates
  • Country and small cap risk premium
  • Corporate capital structure (dept, equity, cash, preferred stock)
  • Leveraged betas for different capital structure strategies (e.g. Hamada)
  • Cash flow specific tax adjustment of discount rates
  • Decision Tree Analysis (DTA) with tree specific risk adjustment of discount rates
  • Synthetic rating
  • NPV calculation
  • Adjusted-Present-Value (APV) approach
  • Flow-to-Equity (FTE) approach
  • Capital Asset Pricing Modell (CAPM)
  • Arbitrage Pricing Theory (APT)
  • (Un)Leveraging beta, operating leverage
  • Taxes and inflation
  • Various dynamic currency exchange rates and countries
  • Annuity valuation
  • Internal Rate of Return and Baldwin Rate of Return
  • Linear Programming (LP), Operations Research (OR)
  • Capital budgetierung, profitability index and annuity
  • Project portfolio management
  • Static valuation methods (costs, profits, EVA, …)
  • Leasing

Monte-Carlo-Simulation & Risk Management

  • Monte-Carlo-Simulation
  • Various stochastic probability distributions
  • Probability distributions of NPV
  • Scenario analysis
  • Break-even analysis
  • Valuation of critical scenarios and factor combinations
  • Valuation of mean values, variances and standard deviations
  • Correlation and regression analysis
  • Sensitivity analysis and tornado diagrams
  • Risk Analysis
  • Advanced stochastic methods
  • Valuation of project volatilities

Real Option Analysis

  • Valuation of Real Options: American, European, Bermuda, Abandon, Expand, Contract, Barrier, Choose, Switch, Sequential & Parallel Compound Options, Investment Stages, Deferment (Wait), Rainbow, Learning, …)
  • Options with and without leakage, crucial for projects with finite lifetimes
  • Analysis and valuation of strategic opportunities
  • Consolidation of decision trees and real option analysis
  • Junction of Monte-Carlo-Simulation and real option analysis
  • Approximate approaches like binomial, trinomial, quadrinomial, octonomial, … lattices
  • Closed analytic approaches like Black-Scholes-Merton, Bjerksund-Stensland, Roll-Geske-Whaley, …
  • Sensitivity analysis and break even values of real options
  • Portfolio management with real options

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