| Autor: Tomasz Wiśniewski | 189 |
Strony: 189-198
pełen tekst
Classification of Risk Analysis Techniques in Company Valuation
Summary
Risk is important characteristic of business operation. Therefore, company valuation procedures should include analysis of risk influence on company value. In the paper split to active and passive risk is introduced and for each group a set of methods is assigned on the basis of indirect risk analysis methods used in investment appraisal. In particular analysis of active risk is important because this kind of risk could result in increase in expected value of the firm assuming the firm is correctly prepared for reaction to such risk. This planned reaction are widely known as real options but in practice simpler methods of real option analysis could be used.
pełen tekstClassification of Risk Analysis Techniques in Company Valuation
Summary
Risk is important characteristic of business operation. Therefore, company valuation procedures should include analysis of risk influence on company value. In the paper split to active and passive risk is introduced and for each group a set of methods is assigned on the basis of indirect risk analysis methods used in investment appraisal. In particular analysis of active risk is important because this kind of risk could result in increase in expected value of the firm assuming the firm is correctly prepared for reaction to such risk. This planned reaction are widely known as real options but in practice simpler methods of real option analysis could be used.