Valuation Techniques for Investment Strategies Analytical Essay by Nicky

Valuation Techniques for Investment Strategies
Looks at valuation techniques for investment strategies as applied to the analysis of Silicon Arts, Inc.(SAI).
# 147913 | 1,095 words | 6 sources | APA | 2011 | US
Published on Aug 10, 2011 in Business (Finance, Investment and Banking) , Economics (Econometrics)

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This paper examines the valuation techniques for internal and external investment strategies based on concepts introduced in the Silicon Arts, Inc. (SAI) Capital Budgeting Simulation. The paper also examines the risks associated with investment decisions. The author reviews discounted cash flow (DCF), relative valuation, and contingent claim valuation, which are three valuation techniques, and examines the meaning of business, valuation and force of sale risks. The paper concludes that, regardless if the risk is at the operational level or because of time constraints, mitigation and assessments techniques are required to avoid significant losses. The DPV formula is included in a footnote.

Table of Contents:
Valuation Techniques
Managing Investment Risk

From the Paper:

"Often, this practice is used as a means of forecasting. While industry analysts have made healthy salaries by making market announcements such as earnings forecasts and buy/sell recommendations, little to no evidence is available to show that investors have made significantly more money by following the advice of these analysts. This strategy is also a form of environment scanning that collects subjective and objective information for strategic and tactical purposes. Therefore, this approach can be helpful in making long-term projections, but shouldn't be the sole strategy used in making important financial decisions."

Sample of Sources Used:

  • Binnin, O., Guo, Y., & Darlington, J. (2001). Lecture Notes in Computer Science. London: Springer Berlin / Heidelberg.
  • Kennon, Joshua (2009). Retrieved April 11, 2009, from The 3 Types of Investment Risk Web site:
  • Morningstar News. (2005). Relative Valuation. Retrieved April 8, 2009, from Morningstar News Web site:
  • n.a. (2003, June 18). Hey, What's That Opaque Financial Institution Worth?. Retrieved
  • April 11, 2009, from The Wharton School at the University of Pennsylvania Web site:

Cite this Analytical Essay:

APA Format

Valuation Techniques for Investment Strategies (2011, August 10) Retrieved December 03, 2023, from

MLA Format

"Valuation Techniques for Investment Strategies" 10 August 2011. Web. 03 December. 2023. <>