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
- …
