Since 2014
Valuation of a Troubled Firm: A Case Study on Jet Airways
MANTHAN: Journal of Commerce and Management
View Archive Info| Field | Value | |
| Title |
Valuation of a Troubled Firm: A Case Study on Jet Airways
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| Creator |
Kalsie, Anjala; Assistant Professor, Faculty of Management Studies (FMS), University of Delhi
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| Subject |
Jet Airways, Valuation, Option Pricing Valuation, Relative Valuation
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| Description |
The objective in the paper is to value a firm in distress which is struggling to survive and continue its operations, unable to meet its debt obligations, and making losses so that it has a negative book value. The paper has taken a listed Indian firm which is in operation since a decade called Jet Airways. The paper looks at different methods to value this company, the most prominent being the real option approach to valuation. Finally, a comparison of different valuation methods was done with the real company price. The Discounted Cash Flow method tends to overvalue the price of a distressed firm. Real option method gives us a much smaller intrinsic price which is even close to the market price of the share.
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| Publisher |
Journal Press India
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| Date |
2015-06-30
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://www.myresearchjournals.com/index.php/MANTHAN/article/view/2449
10.17492/manthan.v1i2.2449 |
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| Source |
MANTHAN: Journal of Commerce and Management; Vol 1, No 2 (2014)
2347-4440 |
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| Language |
eng
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| Relation |
http://www.myresearchjournals.com/index.php/MANTHAN/article/view/2449/2378
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| Rights |
Copyright (c) MANTHAN: Journal of Commerce and Management |
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