Fuzzy real options valuation for oil investments

Cengiz Kahraman*, Irem Uçal

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

2 Citations (Scopus)

Abstract

Energy investments, that have a large portion in the world economy, have immense uncertainty. Traditional valuation methods are less viable in that situation and other methods which can minimize uncertainty become more important. In this study, firstly discounted cash flows (DCF) analysis, which is one of the traditional valuation methods, is compared to real options valuation (ROV) which decreases the uncertainty. Next, fuzzy discounted cash flows (FDCF) analysis and fuzzy real options valuation (FROV) are applied to the same oilfield data. In conclusion the results of these four valuation methods are compared.

Original languageEnglish
Title of host publicationWorld Scientific Proceedings Series on Computer Engineering and Information Science 1; Computational Intelligence in Decision and Control - Proceedings of the 8th International FLINS Conference
PublisherWorld Scientific Publishing Co. Pte Ltd
Pages1027-1032
Number of pages6
ISBN (Print)981279946X, 9789812799463
DOIs
Publication statusPublished - 2008
EventComputational Intelligence in Decision and Control - 8th International FLINS Conference - Madrid, Spain
Duration: 21 Sept 200824 Sept 2008

Publication series

NameWorld Scientific Proceedings Series on Computer Engineering and Information Science 1; Computational Intelligence in Decision and Control - Proceedings of the 8th International FLINS Conference

Conference

ConferenceComputational Intelligence in Decision and Control - 8th International FLINS Conference
Country/TerritorySpain
CityMadrid
Period21/09/0824/09/08

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