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.
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