STRATEGIC FLEXIBILITY AS A TOOL FOR BOOSTING FIRM VALUE IN TURBULENT TIMES

Abstract

Real options analysis has emerged as a pivotal tool for evaluating firms involved in research and development endeavors, particularly those characterized by significant managerial flexibility and inherent uncertainty. This analytical approach not only aids investors in making well-informed investment decisions but also empowers company management by offering insights into the organization's strengths and weaknesses, facilitating strategic planning. The central aim of this paper is to assess the value of Estee Lauder Companies, emphasizing the crucial factors of flexibility and risk. Employing the real options method, the study endeavors to provide a comprehensive estimation of the company's value, shedding light on its potential for growth and adaptation within a dynamic market landscape.