The top guide to using Monte Carlo for the valuation professions...
BVR released Monte Carlo Simulations—Advanced Techniques: A BVR Special Report, by David Dufendach and Jason Andrews (with an introduction by Neil Beaton) this morning.
The purpose of the new guide is to standardize practice, and "to remove the mysteries surrounding Monte Carlo simulations for appraisers and other financial analysts," said editor Jan Davis.
Dufendach and Andrews clearly explain how to apply Monte Carlo techniques to a broad spectrum of valuation issues. Monte Carlo simulations are applied to real-life valuation problems, highlighting underlying concepts and taking you on a journey to full appreciation of this technique. Modeling examples and useful applications are explained, and minefields or potential problems are exposed. Of course, the report wouldn’t be complete without an explanation of current tools to assist the practitioner in designing and interpreting appropriate models, a task that is excellently performed. As a special feature, this report comes with online access to worksheets used to generate Monte Carlo examples.
"This report is invaluable for those practitioners wishing to elevate their valuation analyses of complex assignments requiring more than what traditional valuation procedures can provide," said Beaton.
Table of Contents
- Chapter 1 - Why Monte Carlo?
- Chapter 2 - Modeling: Assumptions and Processes
- Chapter 3 - Useful Applications and Misapplications
- Chapter 4 - Applications of Oracle Crystal Ball in Business Valuation
- Chapter 5 -Diagnostics and Interpretation of Results
- Chapter 6 -GAAP Issues