Customer Reviews

Project Valuation Using Real Options: A Practitioner's Guide

5 star:		(5)
4 star:		(1)
3 star:		(0)
2 star:		(1)
1 star:		(0)

 

 

This is the book for those serious about improving project selection results. This is the only book of its kind for today's project management professional. Finally, I feel I understand how to use this unique approach to evaluate all the options available in selecting projects that will significantly contribute to an organization's bottom line.

Lee R. Lambert, A Founder of PMP

Dr. Kodukula and his associate have written a concise, understandable and interesting book discussing project valuation. I routinely recommend this book to my associates and students, and higly recommend it for students in the MBA tract.

Starting with an introduction to the real options analysis the authors take us through the traditional project valuations tools (which is a bonus) to the process used to value projects using real options analysis, on the way explaining the methods and computational techniques employed to solve real option problems and how real options analysis supplements the traditional tools.

The detailed solutions provided for the various examples using ample figures and tables really help in understanding the application of real options analysis technique to project valuation.

This book will be of great help to corporate executives, senior managers, portfolio, program and project managers who want to go beyond the application of traditional tools of project valuation, searching for newer techniques.

I have read a few other options books for "practitioners" and this book is the best. Very practical and usable. In fact, I read it in small pieces and still get a lot out of it. I thank the others for sparing us on the theory and not trying to sell something.

This small book was the most useful of several that I've read on real options. There are step-by-step instructions, preceded by the necessary concepts. The best example for me was a new product decision: Parameters and solutions are provided for each of the three major valuation methods. I replicate each calculation method in a spreadsheet and observed the modest value differences. I'm finally confident that I understand each foundation method.

I purchased and used this book as part of my research on contemporary investment analysis techniques. Kodukula and Papudesu do a very good job of placing ROA in context with general valuation approaches, and explaining how it is accomplished in enough detail to equip working investment analysts to exercise the technique.

Lets face it, no matter how you approach it, this is a tough and sophisticated topic to write about. While I was braced for a painful experience, I found this to be a surprisingly digestible piece of work, with good analogies used to keep the reader connected.

As an added bonus, the beginning of the guide offers a useful review of other common valuation methods, their formulas, uses and shortcomings. I recommend this as a reference to anyone who must calculate valuation of complex initiatives - even if you don't think you will do ROA.

Some good material but I really found the writing style to be hard to follow and at times confusing. This is a bit of an obscure topic to begin with in my opinion but I think the authors could have done a better job of making the book more readable.