Publications / 2000 Proceedings of the 17th ISARC, Taipei, Taiwan

Valuation and Strategies for Investment on Automation and Robotics

Shih-Ping Ho, Liang Y. Liu
Pages 1-6 (2000 Proceedings of the 17th ISARC, Taipei, Taiwan, ISBN 9789570266986, ISSN 2413-5844)
Abstract:

This paper presents a quantitative valuation method for automation/robotics investments based on modern option pricing theory in finance. This framework explicitly considers the investments? uncertainty/risk and embedded managerial options. It further aligns the valuation of the investments with the market opinions. The analysis may help construction firms more accurately compute the value of automation/robotics investments, and provide useful strategies with respect to various automation/robotics investments.

Keywords: Automation investment, robotics investment, valuation, option pricing theory, real options, capital budgeting, investment timing, risk management, strategic investment.