Real options have proven to be highly beneficial in analysing firms engaged in research and development, particularly those with considerable managerial flexibility and operating under significant levels of uncertainty. The primary objective of this paper is to estimate the value of Estee Lauder Companies, considering both flexibility and risk, primarily employing the real options method. The central aspect of this analysis involves determining the company’s value across various scenarios and exploring different real option alternatives.

Yixuan Huang, Mingyuan Gu. Company Valuation under Risk and Flexibility. Academic Journal of Business & Management (2024) Vol. 6, Issue 2: 14-21. https://doi.org/10.25236/AJBM.2024.060203.

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