RNPV

RNPV

rNPV is the abbreviation of risk-adjusted net present value. Net present value (NPV) is the result of a discounted cash flows calculation. rNPV is the result of a discounted cash flows calculation in the presence of success rates. Each cash flow is adjusted (multiplied) with the probability that it occurs. This probability can be deduced from the success rates of the project that is to be valued.

The method is sometimes also referred to as eNPV (expected net present value).

rNPV is the standard valuation method in the drug development industry, where success rates are easily available for all R&D phases.

References

Boris Bogdan and Ralph Villiger, "Valuation in LIfe Sciences. A Practical Guide", 2008, second edition, Springer Verlag.


Wikimedia Foundation. 2010.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • Nucléoprotéine (NP) du virus de la grippe — La nucléoprotéine (NP) du virus de l’Influenza est la protéine structurale majeure qui interagit avec les segments d’ARN du virus pour former, avec l’ARN polymérase trimérique, la ribonucléoprotéine (RNP). De plus, cette protéine est un… …   Wikipédia en Français

  • Discounted cash flow — Excel spreadsheet uses Free cash flows to estimate stock s Fair Value and measure the sensibility of WACC and Perpetual growth In finance, discounted cash flow (DCF) analysis is a method of valuing a project, company, or asset using the concepts… …   Wikipedia

  • Net present value — In finance, the net present value (NPV) or net present worth (NPW)[1] of a time series of cash flows, both incoming and outgoing, is defined as the sum of the present values (PVs) of the individual cash flows of the same entity. In the case when… …   Wikipedia

  • Credit default swap — If the reference bond performs without default, the protection buyer pays quarterly payments to the seller until maturity …   Wikipedia

  • Biotech valuation — refers to the attribution of a financial value to a company or a project within the biotechnology (biotech) industry. While the biotech industry contains also agro and energy biotech, biotech valuation is usually used in the context of drug… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”