A Study on Valuation of Foreign Real Estate Investment using Real Option
نویسندگان
چکیده
منابع مشابه
A fuzzy real option approach for investment project valuation
The main purpose of this paper is to propose a fuzzy approach for investment project valuation in uncertain environments from the aspect of real options. The traditional approaches to project valuation are based on discounted cash flows (DCF) analysis which provides measures like net present value (NPV) and internal rate of return (IRR). However, DCF-based approaches exhibit two major pitfalls....
متن کاملTheory for Real Estate Valuation
Although people often talk as if theory and practice are different things, as in “that is only theoretical,” nothing is more practical than a good theory. Theory helps make sense of complex situations by directing attention to key issues and by guiding methods of analysis. This paper presents an updating of valuation theory and the methodological implications flowing from this theory. The centr...
متن کاملReal Estate Investment in Taiwan - an Examination of the Recent Opening of Real Estate Markets to Foreign Entities
In hope to revitalize the slumping real estate markets and sluggish economy, the government of Taiwan, Republic of China, has recently opened up direct real estate investment opportunities to foreign entities. In conjunction with the joining of WTO, Taiwan hopes that foreign funds and maybe even investment from Mainland China will infuse capital and uplift the markets. Nevertheless, the potenti...
متن کاملReal Investment Opportunity Valuation and Timing Using a Finite-Lived American Exchange Option Methodology
In practice, the investment opportunities that can be delayed are more like exchange than simple call options, because there are uncertainties both in the gross project value (underlying asset) and in the investment cost (exercise price). Companies that have the option to invest at anytime until a certain date (the maturity), also often have some opportunity costs (the lost cash flows) in holdi...
متن کاملInvestor Sentiment and Commercial Real Estate Valuation
This paper investigates the role of fundamentals and investor sentiment in commercial real estate valuation. In real estate markets, heterogeneous properties trade in illiquid, highly segmented and informationally inefficient local markets. Moreover, the inability to short sell private real estate restricts the ability of sophisticated traders to enter the market and eliminate mispricing. These...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of the Korea Academia-Industrial cooperation Society
سال: 2013
ISSN: 1975-4701
DOI: 10.5762/kais.2013.14.11.5465