Real Option Valuation in Newly Established Companies:A Case Study in R&D Department of a Polymer Company
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

Real Option Valuation in Newly Established Companies:A Case Study in R&D Department of a Polymer Company

Abstract
Attention to newly established companies is an essential means for economic development in each country. Since there is no more than two decades of focus on these kinds of companies, a number of problems of these companies are still unsolved. One of the most important issues to be considered is the value made in these companies.
This research aims to provide a valuation method for Research & Development Departments in newly established companies. To achieve this goal, a polymer company as a case has been selected and the value of R&D department has been determined with using numerical method.
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