DCF & Traditional NPV valuations are fairly accurate when dealing with cost cutting initiatives or capital projects with a high degree of certainty in expected cost savings or revenue forecast. However, when faced with high uncertainty or volatility (for example in disruptive, semi-radical or radical innovation) relying on the same metric typically results in false positive and false negative decision making errors. Real options valuation allows project valuation to capture the value of uncertainty and drive accurate strategic decision making.

Don’t leave opportunity that could transform your organisation on the table by continuing to use not-fit-for-purpose valuation metrics..

Get started with Real Options valuation today