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Stare into the Abyss: Facing up to uncertainty with simulations
Published 1 month ago
Description
In conventional financial analysis, you make point estimates for variables to arrive at an expected value. In a simulation, you assume probability distributions for input variables to derive a distribution of values, yielding a much richer set of data to make decisions with. In this webcast, I use Apple in May 2016 to illustrate the process.
Blog Post: http://bit.ly/1TS47ag
Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/Simulation.pdf
Valuation of Apple: http://www.stern.nyu.edu/~adamodar/pc/blog/AppleMay2016.xls
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