A real option analysis framework for the valuation of internet-based companies

Eric Lu Cao; Kin Keung Lai; Yelin Fu

doi:10.1109/BIFE.2013.78

A real option analysis framework for the valuation of internet-based companies

Eric Lu Cao
, Kin Keung Lai
, Yelin Fu

Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review

1 Citation (Scopus)

Abstract

Internet company valuation has long been considered as a big challenge due to uncertainties. In this paper, a real option analysis framework is proposed to evaluate the value of Internet companies. The proposed framework consists of four steps: strategic analysis, uncertainty analysis, option identification and option analysis. Relative to traditional valuation methods, this proposed analysis framework can investigate the underlying relationships among uncertainty, flexibility and an Internet company's value and thus provide rational valuations of Internet companies under uncertainty.

Original language	English
Title of host publication	Proceedings - 2013 6th International Conference on Business Intelligence and Financial Engineering, BIFE 2013
Publisher	IEEE
Pages	373-377
ISBN (Print)	9781479947775
DOIs	https://doi.org/10.1109/BIFE.2013.78
Publication status	Published - Nov 2013
Event	6th International Conference on Business Intelligence and Financial Engineering, BIFE 2013 - Hangzhou, Zhejiang, China Duration: 14 Nov 2013 → 16 Nov 2013

Conference

Conference	6th International Conference on Business Intelligence and Financial Engineering, BIFE 2013
Place	China
City	Hangzhou, Zhejiang
Period	14/11/13 → 16/11/13

Research Keywords

internet company valuation
Real option analysis
uncertainty

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10.1109/BIFE.2013.78

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title = "A real option analysis framework for the valuation of internet-based companies",

abstract = "Internet company valuation has long been considered as a big challenge due to uncertainties. In this paper, a real option analysis framework is proposed to evaluate the value of Internet companies. The proposed framework consists of four steps: strategic analysis, uncertainty analysis, option identification and option analysis. Relative to traditional valuation methods, this proposed analysis framework can investigate the underlying relationships among uncertainty, flexibility and an Internet company's value and thus provide rational valuations of Internet companies under uncertainty.",

keywords = "internet company valuation, Real option analysis, uncertainty",

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year = "2013",

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doi = "10.1109/BIFE.2013.78",

language = "English",

isbn = "9781479947775",

pages = "373--377",

booktitle = "Proceedings - 2013 6th International Conference on Business Intelligence and Financial Engineering, BIFE 2013",

publisher = "IEEE",

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note = "6th International Conference on Business Intelligence and Financial Engineering, BIFE 2013 ; Conference date: 14-11-2013 Through 16-11-2013",

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Cao, EL, Lai, KK & Fu, Y 2013, A real option analysis framework for the valuation of internet-based companies. in Proceedings - 2013 6th International Conference on Business Intelligence and Financial Engineering, BIFE 2013., 6961158, IEEE, pp. 373-377, 6th International Conference on Business Intelligence and Financial Engineering, BIFE 2013, Hangzhou, Zhejiang, China, 14/11/13. https://doi.org/10.1109/BIFE.2013.78

A real option analysis framework for the valuation of internet-based companies. / Cao, Eric Lu; Lai, Kin Keung; Fu, Yelin.
Proceedings - 2013 6th International Conference on Business Intelligence and Financial Engineering, BIFE 2013. IEEE, 2013. p. 373-377 6961158.

Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review

TY - GEN

T1 - A real option analysis framework for the valuation of internet-based companies

AU - Cao, Eric Lu

AU - Lai, Kin Keung

AU - Fu, Yelin

PY - 2013/11

Y1 - 2013/11

N2 - Internet company valuation has long been considered as a big challenge due to uncertainties. In this paper, a real option analysis framework is proposed to evaluate the value of Internet companies. The proposed framework consists of four steps: strategic analysis, uncertainty analysis, option identification and option analysis. Relative to traditional valuation methods, this proposed analysis framework can investigate the underlying relationships among uncertainty, flexibility and an Internet company's value and thus provide rational valuations of Internet companies under uncertainty.

AB - Internet company valuation has long been considered as a big challenge due to uncertainties. In this paper, a real option analysis framework is proposed to evaluate the value of Internet companies. The proposed framework consists of four steps: strategic analysis, uncertainty analysis, option identification and option analysis. Relative to traditional valuation methods, this proposed analysis framework can investigate the underlying relationships among uncertainty, flexibility and an Internet company's value and thus provide rational valuations of Internet companies under uncertainty.

KW - internet company valuation

KW - Real option analysis

KW - uncertainty

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U2 - 10.1109/BIFE.2013.78

DO - 10.1109/BIFE.2013.78

M3 - RGC 32 - Refereed conference paper (with host publication)

SN - 9781479947775

SP - 373

EP - 377

BT - Proceedings - 2013 6th International Conference on Business Intelligence and Financial Engineering, BIFE 2013

PB - IEEE

T2 - 6th International Conference on Business Intelligence and Financial Engineering, BIFE 2013

Y2 - 14 November 2013 through 16 November 2013

ER -

A real option analysis framework for the valuation of internet-based companies

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