Valuation of Companies using Simulation Techniques of Stochastic Process Methods

In this paper we present the concept for valuation of companies using stochastic process methods. The stochastic processes are used for modelling the random parameters determining the value. Stochastic processes in discrete and continuous time as well as with discrete and continuous state space are considered. The corresponding decision situation is modelled, as a stochastic dynamic optimization problem. As shown in the article this results in distribution functions for the corporate value which lie approximately in the class of normal distribution functions.