Alessandri, Todd M.Lander, Diane M.Bettis, Richard A.2011-01-272011-01-272003https://hdl.handle.net/10474/1672Author's OriginalStrategy is ultimately aimed at creating shareholder value, placing valuation in a central role linking finance and strategy. Focusing on growth options, this paper uses a unique "perfect information" model to examine, from a strategy point of view, the relationship between the market value of the firm and its intrinsic, or DCF, value. Although the research is at the level of the firm, the results have implications at the level of individual strategies and projects, since a firm can be conceptualized as a collection of projects. The findings highlight the relationship between the value of growth options and macroeconomic conditions, industry characteristics, and firm-specific factors. A revised version of this paper has since been published in the journal Advances in Strategic Management. Please use this version in your citations.648810 bytesen-USEmerald Group Publishing Limited retains all ownership rights. Further reproduction in violation of copyright is prohibitedgrowth optionsfinancial theoryvaluationgrowth optionsvaluationfinancial theoryWorking Paperapplication/pdf