APPLICATION OF PROJECT VALUATION USING REAL OPTIONS WITH LEARNING PROCESS AND TRINOMIAL TREE IN PT VALE INDONESIA TBK
PT Vale Indonesia Tbk is a company in the nickel mining sector which has become a public company in the Indonesia Stock Exchange with the ticker code INCO. It is very important to carry out financial projections or modeling to assess the valuation of an investment in a project. The most common me...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/81836 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | PT Vale Indonesia Tbk is a company in the nickel mining sector which has become
a public company in the Indonesia Stock Exchange with the ticker code INCO. It is
very important to carry out financial projections or modeling to assess the valuation
of an investment in a project. The most common method used for valuing a company
or project is the Discounted Cash Flow (DCF) method. However, the DCF method is
very vulnerable to changes in market conditions which in practice have high volatility,
especially in the commodity industry. Therefore, real options is applied in evaluating
the project value of PT Vale Indonesia Tbk. In this research, INCO projects will be
valued using real options with the learning process method and trinomial trees. The
application of this method is possible to add value to the project so that decisions can
be reviewed to obtain optimal valuation. |
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