Real Options Valuation approach improved the project value by incorporating scenario analysis and strategic option in the valuation process. Most of these IPOs are not profitable, but their valuations are steep. The first is to use discounted cash flow, relative-valuation, or asset-oriented methods and ignore. This framework allows their owner to keep investment options open. Importance of Real Options in Valuation Almost one in every three IPOs listed in global stock markets are startups/unicorns. Three ways to value real options are discussed in this book. The result of this study showed Real Options Valuation obtained the highest project value indicating a higher return of the project that was previously undervalued using NPV and ENPV. are viewed as real options that can be valued using financial option pricing techniques. The risk of the project defined with 3 scenarios to obtain NPV and calculate Expected Net Present Value (ENPV). The Monte Carlo Simulation calculated NPV based on discount rate, production volume, and operation and maintenance (O&M) cost. Using real options value analysis (ROV), managers can estimate the opportunity cost of continuing or abandoning a project and make better decisions accordingly. Project value determined based on Net Present Value (NPV). The present value (PV) of future discounted expected cash flows is either 3000 if the market goes up or 500. The result is a comparison table listing the selected statistics across multiple forecasts. The purpose of this study is to evaluate and analyze the present value of the geothermal power plant projects in Indonesia using net present value and real options valuation approach to obtain better project value that indicates profitable investments. A company is considering investing in a project. This new tool can create reports of just the key forecast statistics (e.g., mean, median mode, standard deviation, variance, coefficient of variation, skew, kurtosis) as well as confidence levels and probabilities of the output forecast variables you select. It is true that the DCF Valuations is not always the best way to value early stage products for the simple reason that it does not take into account the. * Corresponding author: power project should be carefully evaluated, because not only the project is large-scale and high-risk, but also huge investments are needed to make the project profitable. Industrial Engineering Department, Universitas Indonesia
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