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Project Management in the Region Within the Digitalization Read chapter Read first chapter

2021 | OriginalPaper | Chapter

Stochastic Risk Factors to Capture Tendences in Business and Economy

Author : P. E. Zhukov

Published in: Economic Systems in the New Era: Stable Systems in an Unstable World

Publisher: Springer International Publishing

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Abstract

The article is pointed to draw attention for the stochastic risk factors and how to use those to analyze tendences in business and economy. The method of stochastic risk factors (SRF) is based on separating the company’s cash flows into a basic business project and a growth project, and on applying stochastic discount factors to the company’s basic cash flow based on the current company value. The research was conducted on two samples of companies – the oil and gas sector (presumably with zero growth) and digital economy. It was concluded that prospects of oil and gas sector looks rather poor and the assumed average growth rates are close to zero. On the contrary, growth rates for IT sector may be estimated as higher than average growth rates for economy. It is very likely, that IT sector sustain all crisis events, overcome all the risks and troubles and will play dominant role in the future development.

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Metadata
Title
Stochastic Risk Factors to Capture Tendences in Business and Economy
Author
P. E. Zhukov
Copyright Year
2021
Book
Economic Systems in the New Era: Stable Systems in an Unstable World

Print ISBN: 978-3-030-60928-3

Electronic ISBN: 978-3-030-60929-0

Copyright Year: 2021

DOI
https://doi.org/10.1007/978-3-030-60929-0_19

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