The Use of @RISK and Economic Value Added in Business Valuation

Valuation is a critical part of business decision making, whether it’s to invest in a new technology or to acquire an entire company. Regardless of the investment, there are fundamental principles of finance and economics that determines what something is worth. In this brief introduction, we’ll explore the concepts of Economic Value Added and Free Cash Flow, as well as the key operating drivers of value creation.  In addition, we will quantify the uncertainty that plagues most every business decision by utilizing a superior yet simplistic analysis known as Monte Carlo.

 

New York’s Economic Value Advisors feature @RISK in their risk management course . . . for more information click here