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burnrate00
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Joined: July 3rd, 2015, 7:08 am

Stochastic approach to corporate valuation

November 17th, 2016, 1:23 pm

Hello everyone, I am interested in the title argument for my final thesis (Master of Science in Finance, major in Investment Banking). I received some guidance from my professors about interesting points of view for the valuation of companies using stochastic approaches (i.e. Lu Zhang - Investment CAPM and others). I was wondering if there is any fundamental paper to read. I know there is a lot of literature about the argument... My idea is to merge fundamental valuation of companies with asset/derivatives pricing techniques. Any help and advice is much appreciated!
 
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Alan
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Re: Stochastic approach to corporate valuation

November 17th, 2016, 3:57 pm

Sounds like you are at the googling stage to see what has been done. I would start some searches with
"real options theory" + "corporate valuation"