DCF vs. Real Options: How Best to Value Online Financial Companies (With an Application to Egg)

Published 03 Jan 2001
Reference 4930
Industry Banking
Region Global
Summary

This case study describes the comparison of discounted cash flow versus real options to the value of a company. It also investigates its application to the British Internet bank Egg.

Teaching objectives

To facilitate a discussion of the comparison of DCF vs. real options To identify parameters necessary to apply real options to a bank

Keywords
  • AR2001
  • RD0101