Evaluation of real options portfolio for investment projects

Abstract

The goal of this paper is to offer recommendations for evaluating the portfolio of real options in investment projects. The study reviews the real options methodology, analyses real options valuation models, and formulates methodology for valuing real options portfolio. The proposed approach was tested using the example of a company that produces shale oil. As a result, the mechanism for assessing the portfolio of real options and their application was offered to managers who are engaged in the evaluation of investment projects.