Having long held a reputation as a confusing – even baffling – statistical analysis technique, Monte Carlo simulations have received short shrift in the valuation process as practitioners have opted for simpler, and more easily explainable techniques. In doing so, the valuation community has left out an important and useful tool from their analysis that could provide invaluable insights.

In the "Advanced Workshop on Monte Carlo Simulations," experts David Dufendach and Jason Andrews explain the nuance and challenge of this valuation technique, removing its complexity and providing clarity for the valuation analyst seeking to harness this powerful tool. Over the course of this intensive four-hour workshop, Dufendach and Andrews will lead attendees through case-studies and hands-on examples as they present from their Seattle offices via a live, interactive video feed. Never has there been a better opportunity to master the Monte Carlo simulation.

This presentation will rely on case studies and other examples of Monte Carlo Simulations in action, shown without emphasis on computer programs, familiarity with which are not a prerequisite for this workshop.

• Introduction to Monte Carlo Simulations
• When Monte Carlo simulations may be appropriate
• Why Monte Carlo simulations may be appropriate
• Monte Carlo Applications
• Financial statement metrics (e.g. net income, EBITDA, etc.)
• Enterprise valuation (income approach)
• Option valuation
• Equity derivative valuation
• Monte Carlo Examples
• European option
• Binomial option pricing model
• Geometric-Brownian Motion
• Call option with path-dependent market condition
• Binomial option pricing model
• Geometric-Brownian Motion
• Volatility estimation
• Interpreting Monte Carlo Results
• Summary of statistical results
• Indication of value
• Application Guidance
• Helpful tips and advice to implementing a Monte Carlo simulation
• Inappropriate Applications for Monte Carlo
• Conclusion and Q&A

• Learn how and when to use Monte Carlo simulations
• Understand how Monte Carlo simulations can be applied in various situations and what adjustments must be made depending on the context
• Identify the pitfalls of Monte Carlo simulations and analysis and learn how to best prepare for such trouble spots
• Define the best uses and applications of Monte Carlo simulations as well as how they can be utilized for your current projects