Search the World's Largest Database of Information Science & Technology Terms & Definitions
InfInfoScipedia LogoScipedia
A Free Service of IGI Global Publishing House
Below please find a list of definitions for the term that
you selected from multiple scholarly research resources.

What is Valuation

Handbook of Research on Holistic Optimization Techniques in the Hospitality, Tourism, and Travel Industry
The process of determining the present value of all potential future cash flows of an asset.
Published in Chapter:
Optimizing Investment Decisions Using DCF, Decision Tree Analysis, and Real Options Analysis: The Case of Hotel Expansions
Ramya Rajajagadeesan Aroul (Ecole Hôtelière de Lausanne, HES-SO – University of Applied Sciences Western Switzerland, Switzerland)
DOI: 10.4018/978-1-5225-1054-3.ch004
Abstract
Large scale infrastructure expansions in hotels are exposed to uncertainty. Since the costs involved in these expansion projects are high and often irreversible, hotels would benefit from analyses that incorporate uncertainty along with traditional valuation techniques like the discounted cash flow (DCF) method. Decision tree analysis (DTA) and real options analysis (ROA) have been in use for the past couple of decades to handle uncertainties and optimize investment decisions. DTA provides a distinct approach to strategic investments that quantitatively takes into account the uncertainties involved in the investments. Under uncertainty, the decision about whether to expand is analogous to the decision about whether to exercise an American call option. By using ROA to the hotel expansion scenario, managers can incorporate and quantify, flexibility and timing in their analysis. The objective of this chapter is to detail the DCF, DTA and ROA methodologies and their applications specific to hotel expansion investments.
Full Text Chapter Download: US $37.50 Add to Cart
More Results
Full Text Chapter Download: US $37.50 Add to Cart
Full Text Chapter Download: US $37.50 Add to Cart
Startup Valuation: Theories, Models, and Future
Valuation is a determination of how much a transaction can be realized at a price if a company is exchanged with its current form.
Full Text Chapter Download: US $37.50 Add to Cart
Full Text Chapter Download: US $37.50 Add to Cart
Full Text Chapter Download: US $37.50 Add to Cart
eContent Pro Discount Banner
InfoSci OnDemandECP Editorial ServicesAGOSR