Monte Carlo Simulation Use Case in Valuation
Assumtions in DCF Model: Problem with the Assumptions: Risk free free Market Risk Premium Beta: Tax Rate: Terminal Growth Rate
Assumtions in DCF Model: Problem with the Assumptions: Risk free free Market Risk Premium Beta: Tax Rate: Terminal Growth Rate
What is Monte Carlo Simulation? The Monte Carlo simulation is a mathematical technique used to understand the impact of risk and uncertainty in quantitative analysis and decision-making processes. It’s named after the famous Monte Carlo Casino in Monaco, known for its…