個案資料
了解個案內容與學習目標，選擇授課教師及使用課程。
Valuing the Option Component of Debt and Its Relevance to DCF-Based Valuation Methods
內容大綱
The flows-to-equity or equity cash flows valuation method is a discounted cash flow method used to estimate the equity portion of the capital structure. It is closely related to the venture capital/buyout valuation method, which estimates the IRR of the stream of cash flows accruing to equity holders. Both of these methods are likely to result in an estimate of equity value that is too low when the firm's debt is risky (or, equivalently, an IRR that is too high, depending on the method used to estimate terminal value). This case describes a method for estimating the size of this bias, drawing insight from option-pricing.