Valuation Flashcards
1
Q
How many valuation methods are outlined by the Red Book?
A
“5 main valuation methodologies
- Investment methods (which includes DCF and Trad Val) »_space; DCF pg 190 Red, the forecasted cash flow is discounted back to the valuation date , resulting in a present value of the asset (explicit) /apc success - used when there is an income stream, then capitalised the rental income to produce a capital value»_space; Income cap is calculating the value of an asset using the terminal value with no explicit projection period»_space;
- Comparable method ( Market approach) - since when it changes? - published on latest edition of IVS International Valuation Standards on 31 Jan 2024 (effective from 31 Jan 2025)
- Profit methods
- Residual methods
- Depreciated replacement costs
https://ww3.rics.org/uk/en/journals/property-journal/apc-5-valuation-methods.html”
2
Q
walk me through the process of valuation
A
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3
Q
A