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

By Jean Dermine,  Karsten Wildberger,  Hans Georgeson
Published 03 Jan 2001
Reference 4930
Topic Economics & Finance
Industry Banking
Region Global
Length 46 page(s)
Language English
Inspection copy
6.00
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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
About the authors
Dermine

Jean Dermine

Emeritus Professor of Banking and Finance

Karsten Wildberger

Hans Georgeson


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