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HAL MONTICARLO SIMULATOR
This project presents a Monte Carlo simulation-based Discounted Cash Flow (DCF) valuation model for Hindustan Aeronautics Limited (HAL). The objective is to estimate the intrinsic value of the company by incorporating uncertainty in key financial drivers such as revenue growth, discount rate, and terminal growth rate.
Using R, the model performs multiple simulations to generate a distribution of possible valuations rather than relying on a single-point estimate. This probabilistic approach enables a more comprehensive understanding of valuation risk, variability, and sensitivity to assumptions.
The analysis demonstrates how stochastic modeling techniques can enhance traditional corporate finance valuation methods, particularly for capital-intensive and government-linked enterprises like HAL.