Preprint
Sep 2026
Firm Valuation When AI Shapes the Business Model: A Milestone-Based Real-Options Framework for the AI Valuation Uncertainty Problem
Standard valuation methods, including discounted cash flow, the income approach standard IDW S 1 of the Institute of Public Auditors in Germany, and market multiples, compress milestone probabilities, continuation options, and risk shifts into opaque aggregate parameters; none provides a structured protocol for decompo...
Walter Kurz, Wojtek Stricker, Stefan Marx et al.
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