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VALUE‐AT‐RISK AND CORPORATE VALUATION

VALUE‐AT‐RISK AND CORPORATE VALUATION Although first used mainly by financial institutions to evaluate their trading risks, Value‐at‐Risk (VAR) can also be used to enhance an industrial corporation's understanding and management of its market risks. To illustrate this broader application of VAR analysis, the authors present a simple example focusing on the valuation of a closely held company. In this case, VAR is used to analyze the sensitivity of the firm's value to movements in uncertain exchange rates, commodity prices, and interest rates. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Applied Corporate Finance Wiley

VALUE‐AT‐RISK AND CORPORATE VALUATION

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References (1)

Publisher
Wiley
Copyright
Copyright © 1998 Wiley Subscription Services, Inc., A Wiley Company
ISSN
1078-1196
eISSN
1745-6622
DOI
10.1111/j.1745-6622.1998.tb00314.x
Publisher site
See Article on Publisher Site

Abstract

Although first used mainly by financial institutions to evaluate their trading risks, Value‐at‐Risk (VAR) can also be used to enhance an industrial corporation's understanding and management of its market risks. To illustrate this broader application of VAR analysis, the authors present a simple example focusing on the valuation of a closely held company. In this case, VAR is used to analyze the sensitivity of the firm's value to movements in uncertain exchange rates, commodity prices, and interest rates.

Journal

Journal of Applied Corporate Finance – Wiley

Published: Jan 1, 1998

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