A compound option valuation model of R&D-intensive pharmaceutical companies

Abstract

This paper presents a model for the valuation of R&D in the pharmaceutical sector, both for start-up ventures as well as for big conglomerates. The key understanding is that these projects can be seen as growth options. Traditional valuation techniques as DCF-analysis fail in valuing R&D-intensive pharmaceutical companies because most of their value is… (More)

1 Figure or Table

Topics

  • Presentations referencing similar topics