scholarly journals Has Climate Change Even Impacted the Valuation of Companies? An Evidence from Gujarat Fluorochemicals Ltd. in India

2018 ◽  
Vol 4 (2) ◽  
pp. 184 ◽  
Author(s):  
Anjala Kalsie ◽  
Aishwarya Nagpal ◽  
◽  
Keyword(s):  
Climate Change ◽  
Cash Flow ◽  
Chemical Industry ◽  
Environmental Changes ◽  
Flow Analysis ◽  
Carbon Credits ◽  
Discounted Cash Flow ◽  
Financial Valuation ◽  
And Performance ◽  
Global Threat

Climate change is undeniably the major challenge of our times and poses a global threat to civilization. The present study attempts to analyze the shift in the environmental changes in the Indian chemical industry and to evaluate such an impact on the financial valuation and performance of the companies by investigating the case of one of the major players in the fluorochemical industry in India, Gujarat Fluorochemicals Ltd. (GFL). Employing Discounted Cash Flow Analysis, the study discovers that climate change in the form of increased carbon credits has positively impacted the financial valuation of GFL. The findings suggest that an increase of approximately 44% in the valuation of the GFL is owing to the revenue from the sale of the carbon credits as per the Kyoto Protocol.

Economics of Making Roadway Pavements Resilient to Climate Change: Use of Discounted Cash Flow and Real Options Analysis

2019 ◽  
Vol 25 (3) ◽  
pp. 04019017 ◽  
Author(s):  
Nivedya M. Kottayi ◽  
Rajib B. Mallick ◽  
Jennifer M. Jacobs ◽  
Jo Sias Daniel
Keyword(s):  
Climate Change ◽  
Real Options ◽  
Cash Flow ◽  
Discounted Cash Flow ◽  
Real Options Analysis

Manufacturer's pricing and lot-sizing decisions for perishable goods under various payment terms by a discounted cash flow analysis

2019 ◽  
Vol 218 ◽  
pp. 83-95 ◽  
Author(s):  
Chun-Tao Chang ◽  
Liang-Yuh Ouyang ◽  
Jinn-Tsair Teng ◽  
Kuei-Kuei Lai ◽  
Leopoldo Eduardo Cárdenas-Barrón
Keyword(s):  
Cash Flow ◽  
Lot Sizing ◽  
Flow Analysis ◽  
Discounted Cash Flow ◽  
Perishable Goods

Methodologies and Techniques for Determining the Value of an Aircraft

2020 ◽  
pp. 036119812095841
Author(s):  
Bijan Vasigh ◽  
Farshid Azadian ◽  
Kamran Moghaddam
Keyword(s):  
Cash Flow ◽  
Flow Analysis ◽  
Operating Costs ◽  
Asset Valuation ◽  
Discounted Cash Flow ◽  
Valuation Model ◽  
Exogenous Factors ◽  
New Generation ◽  
Operating Revenue

Aircraft valuation and the estimation of an accurate aircraft price is undoubtedly a challenging task that has significant consequences for airlines. This paper presents an asset valuation model to show how a series of endogenous as well as exogenous factors can influence the value of an aircraft. Specifically, a discounted cash flow methodology is used to forecast the valuation of an old or new generation aircraft. Both total operating revenue and aircraft operating costs are taken into account to devise a reliable pre-tax profit measurement that is used as the basis of the discounted cash flow analysis. A sensitivity analysis based on Monte Carlo simulation is utilized to identify which factors have a more significant influence on the suggested aircraft value. Therefore, it addresses how value fluctuates in response to economic fluctuations. Indeed, the calculated value of an aircraft highly depends on the underlying assumptions used. The calculated value is compared with available data in a case study for verification.

scholarly journals Real Options and Discounted Cash Flow Analysis to Assess Strategic Investment Projects

2017 ◽  
Vol 30 (1) ◽  
pp. 91-101 ◽  
Author(s):  
Agnė Pivorienė
Keyword(s):  
Real Options ◽  
Cash Flow ◽  
Flow Analysis ◽  
Investment Decisions ◽  
Business Environment ◽  
Strategic Decision ◽  
Discounted Cash Flow ◽  
Strategic Investment ◽  
Investment Projects ◽  
Real Options Approach

Abstract In today’s uncertain and highly competitive business environment, the difficulty to make strategic investment decisions is growing. The dominant discounted cash flow analysis requires the assumption of perfect certainty of project cash flows. However, under uncertainty traditional DCF approach falls short of providing adequate strategic decision support, and this situation demands new methods for investment evaluation. Real options approach (ROA) has shown the potential for valuation of strategic corporate investment decisions and managerial flexibility in situations of high uncertainty. Under ROA, projects are viewed as real options that can be valued using financial option pricing techniques. This framework allows their owner to keep investment options open and to benefit from the upside potential of an opportunity while controlling the downside risk. The main aim of this research is to investigate the feasibility of real options approach and traditional DCF analysis for assessment of strategic investment projects under environmental uncertainty.

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