SERVICES > Investment Modelling

The ValueXplorer® methodology incorporates a number of financial and operational modelling techniques which are applicable in certain circumstances. Most of our models though are based on our proprietary Discounted Cashflow templates which conform to the International Accounting Standards.

The most commonly applied modelling techniques are:

• Discounted cash flow (DCF) for traditional project Net Present Value (NPV) calculations;
• Montecarlo Simulation for simulating multiple NPV calculations with varying input assumptions;
• System dynamics for non-nonlinear modelling to determine root cause of undesirable behaviour;
• Decision Tree Analysis (DTA) for multistage projects with contingent decisions using probabilities of outcomes to account for market risk;
• Real Options Valuation incorporating DCF, DTA and simulations to capture the additional value created by the options embedded in a project when the payoff uncertainty is high;
• Econometric Modelling to forecast main macroeconomic indicators employing linear and non-linear methods such as Ordinary Least Squares, Dynamic Factor Models and Artificial Neural Networks.

Our models are delivered on the SAP Business Objects Budgeting, Planning & Consolidation platform as well as Microsoft Excel and Microsoft SQL Server Analysis Server.