Valuation of Emerging Companies by Taking into Account the Rate of Discounting of the Variable and Volatility Changes Using the New Valuation Approaches

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Zarei, Hashem | 2019

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 52241 (01)
University: Sharif University of Technology
Department: Industrial Engineering
Advisor(s): Modarres, Mohammad
Abstract:
Nowadays the evaluation startups has been difficult and this problem increases the likelihood of misunderstanding price of company's stock. Companies need precise evaluation in different steps of their development. during fund-raising, To make the investors’ share determine, the value of companies should be calculated because the investors’ share equals the ratio of new investment to the value of company after investment. Besides, during the merge or possession of a company, to determine the value of the deal or the share of the dealers, we need to evaluate value of the company. to evaluate the Intrinsic value of company, we need to know potential revenue streams, financial statements, the market size,the market share, the value of brand, the mangement's performance and etc. Inaccessibility of information and lack of unanimity on evaluation method led analyzers to search in different methods to estimate the precise value of a businesses. This paper implement a model to evaluate a startup by employing real option, which includes a three-step tree, financial information of the company, variation of deviation(fluctuation) and interest rate
Keywords:
Valuation ; Start-up Companies ; Changing Volatility ; Real Option Method ; Trinomial Tree

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