Reveal the appraisal method boosting your investment returns

Real Options Valuation: Flexibility in Decision Making

Real options valuation is an advanced appraisal method that incorporates flexibility in investment decisions. It allows investors to adapt to changing market conditions by evaluating the value of options embedded within a project, such as expanding, delaying, or abandoning a project. This method is particularly useful in volatile markets, providing a strategic advantage in decision-making⁴.