IS Valuation Methods: Insights from Capital Markets Theory and Practice
نویسندگان
چکیده
In this paper, an analogy between IT firm valuation and IS valuation is used to learn from how investment banking professionals cope with the renowned valuation problem. It becomes clear that theoretically sound approaches like the discounted cash flow might be inappropriate to determine the true value of a software company. Especially for IT valuation, real options approaches are a promising way of capturing the “true” underlying value to new technologies. Unfortunately, as expert interviews reveal, the importance of this approach in investment banking practice is negligible.
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