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Income Approach
The income approach is one of three major groups of methodologies, called valuation ''approaches'', used by appraisers. It is particularly common in commercial real estate appraisal and in business appraisal. The fundamental math is similar to the methods used for financial valuation, securities analysis, or bond pricing. However, there are some significant and important modifications when used in real estate or business valuation. While there are quite a few acceptable methods under the rubric of the income approach, most of these methods fall into three categories: direct capitalization, discounted cash flow, and gross income multiplier. Direct Capitalization This is simply the quotient of dividing the annual net operating income (NOI) by the appropriate capitalization rate (CAP rate). For income-producing real estate, the NOI is the net income of the real estate (but not the business interest) plus any interest expense and non-cash items (e.g. -- depreciation) minus a reserve fo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Real Estate Appraisal
Real estate appraisal, property valuation or land valuation is the process of developing an opinion of value for real property (usually market value). Real estate transactions often require appraisals because they occur infrequently and every property is unique (especially their condition, a key factor in valuation), unlike corporate stocks, which are traded daily and are identical (thus a centralized Walrasian auction like a stock exchange is unrealistic). The location also plays a key role in valuation. However, since property cannot change location, it is often the upgrades or improvements to the home that can change its value. Appraisal reports form the basis for mortgage loans, settling estates and divorces, taxation, and so on. Sometimes an appraisal report is used to establish a sale price for a property. Besides the mandatory educational grade, which can vary from Finance to Construction Technology, most, but not all, countries require appraisers to have the license fo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
University Of Reading
The University of Reading is a public university in Reading, Berkshire, England. It was founded in 1892 as University College, Reading, a University of Oxford extension college. The institution received the power to grant its own degrees in 1926 by royal charter from King George V and was the only university to receive such a charter between the two world wars. The university is usually categorised as a red brick university, reflecting its original foundation in the 19th century. Reading has four major campuses. In the United Kingdom, the campuses on London Road and Whiteknights are based in the town of Reading itself, and Greenlands is based on the banks of the River Thames in Buckinghamshire. It also has a campus in Iskandar Puteri, Malaysia. The university has been arranged into 16 academic schools since 2016. The annual income of the institution for 2016–17 was £275.3 million of which £35.4 million was from research grants and contracts, with an expenditur ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Valuation (finance)
In finance, valuation is the process of determining the present value (PV) of an asset. In a business context, it is often the hypothetical price that a third party would pay for a given asset. Valuations can be done on assets (for example, investments in marketable securities such as companies' shares and related rights, business enterprises, or intangible assets such as patents, data and trademarks) or on liabilities (e.g., bonds issued by a company). Valuations are needed for many reasons such as investment analysis, capital budgeting, merger and acquisition transactions, financial reporting, taxable events to determine the proper tax liability. Valuation overview Common terms for the value of an asset or liability are market value, fair value, and intrinsic value. The meanings of these terms differ. For instance, when an analyst believes a stock's intrinsic value is greater (or less) than its market price, an analyst makes a "buy" (or "sell") recommendation. Moreove ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Real Estate Valuation
Real estate appraisal, property valuation or land valuation is the process of developing an opinion of value for real property (usually market value). Real estate transactions often require appraisals because they occur infrequently and every property is unique (especially their condition, a key factor in valuation), unlike corporate stocks, which are traded daily and are identical (thus a centralized Walrasian auction like a stock exchange is unrealistic). The location also plays a key role in valuation. However, since property cannot change location, it is often the upgrades or improvements to the home that can change its value. Appraisal reports form the basis for mortgage loans, settling estates and divorces, taxation, and so on. Sometimes an appraisal report is used to establish a sale price for a property. Besides the mandatory educational grade, which can vary from Finance to Construction Technology, most, but not all, countries require appraisers to have the license fo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lexis-Nexis
LexisNexis is a part of the RELX corporation that sells data analytics products and various databases that are accessed through online portals, including portals for computer-assisted legal research (CALR), newspaper search, and consumer information. During the 1970s, LexisNexis began to make legal and journalistic documents more accessible electronically. , the company had the world's largest electronic database for legal and public-records–related information. History LexisNexis is owned by RELX (formerly known as Reed Elsevier). According to Trudi Bellardo Hahn and Charles P. Bourne, LexisNexis (originally founded as LEXIS) is historically significant because it was the first of the early information services to envision a future in which large populations of end users would directly interact with computer databases, rather than going through professional intermediaries like librarians. Available through IEEE Xplore. Other early information services in the 1970s met with f ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
German Income Approach
The German income approach (German: Ertragswertverfahren, abbr. EWV) is the standard approach used in Germany for the valuing of property that produces a stream of future cash flows. Basic principles and regulations The EWV is one of three valuation methods codified by German legislation. The ''Vergleichswertverfahren'' (sales comparable approach) is mainly used to determine the value of owner-occupied buildings (single-family houses, condominiums) and land. The ''Sachwertverfahren'' (cost approach) is only used for special use properties that do not produce a measurable future cash flow. Subsequently, the EWV is used for the vast majority of appraisals. Even though the EWV is mostly consistent with international practice, there are some important differences: *Land and improvements are treated separately. German Generally Accepted Valuation Principles (GAVP) assumes that the land can be used indefinitely, but that buildings have a limited lifespan; This coincides with the ba ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
CAGR
Compound annual growth rate (CAGR) is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the time period. CAGR is not an accounting term, but it is often used to describe some element of the business, for example revenue, units delivered, registered users, etc. CAGR dampens the effect of volatility of periodic returns that can render arithmetic means irrelevant. It is particularly useful to compare growth rates from various data sets of common domain such as revenue growth of companies in the same industry or sector. CAGR is equivalent to the more generic exponential growth rate when the exponential growth interval is one year. Formula CAGR is defined as: :\mathrm(t_0,t_n) = \left( \frac \right)^\frac - 1 where V(t_0) is the initial value, V(t_n) is the end value, and t_n - t_0 is the number of years. Actual or normalized values may be used for calculation as long as they retain the same mathematical propor ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rate Of Return
In finance, return is a profit on an investment. It comprises any change in value of the investment, and/or cash flows (or securities, or other investments) which the investor receives from that investment, such as interest payments, coupons, cash dividends, stock dividends or the payoff from a derivative or structured product. It may be measured either in absolute terms (e.g., dollars) or as a percentage of the amount invested. The latter is also called the holding period return. A loss instead of a profit is described as a '' negative return'', assuming the amount invested is greater than zero. To compare returns over time periods of different lengths on an equal basis, it is useful to convert each return into a return over a period of time of a standard length. The result of the conversion is called the rate of return. Typically, the period of time is a year, in which case the rate of return is also called the annualized return, and the conversion process, described below, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
RICS
The Royal Institution of Chartered Surveyors (RICS) is a global professional body for surveyors, founded in London in 1868. It works at a cross-governmental level, and aims to promote and enforce the highest international standards in the valuation, management and development of land, real estate, construction and infrastructure. Founded as the Institution of Surveyors, it received a royal charter in 1881, and in 1947 became the Royal Institution of Chartered Surveyors. With a London HQ and regional offices across the United Kingdom, plus international offices, it serves a 134,000-strong membership distributed over nearly 150 countries. The RICS is linked to other national surveying institutions, collaborates with other professional bodies, and, in 2013, was a founder member of a coalition to develop the International Property Measurement Standards (IPMS). It also produces cost information and professional guidance on valuation and other activities. In September 2021, an inde ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Neil Crosby
Neil Crosby is an academic valuer, Professor of Real Estate at the University of Reading.http://www.emeraldinsight.com/journals.htm?articleid=844986&show=abstract ("Neil Crosby is a Professor in the Department of Land Management and Development, University of Reading") He has been instrumental in changing property valuation practices in the United Kingdom through a series of journal publications in the late 1980s and early 1990s, which dealt with questions of investment property valuation methodology, and through an influential book (''Property Investment Appraisal'', co-authored with Andrew Baum and now nearing its third edition). The RICS adopted the 'Short-cut DCF' method (a.k.a. the 'Real-value' method) proposed by Crosby, in the 1997 Valuation Information Paper: ''Commercial Investment Property - Valuation Methods''. In 2002, he was awarded the International Real Estate Society’s annual achievement award for his work in real estate research, education and practice. See ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Business Valuation
Business valuation is a process and a set of procedures used to estimate the economic value of an owner's interest in a business. Here various valuation techniques are used by financial market participants to determine the price they are willing to pay or receive to effect a sale of the business. In addition to estimating the selling price of a business, the same valuation tools are often used by business appraisers to resolve disputes related to estate and gift taxation, divorce litigation, allocate business purchase price among business assets, establish a formula for estimating the value of partners' ownership interest for buy-sell agreements, and many other business and legal purposes such as in shareholders deadlock, divorce litigation and estate contest. Specialized business valuation credentials include the Chartered Business Valuator (CBV) offered by the CBV Institute, ASA and CEIV from the American Society of Appraisers, and the CVA by the National Association of Certi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
John A
Sir John Alexander Macdonald (January 10 or 11, 1815 – June 6, 1891) was the first prime minister of Canada, serving from 1867 to 1873 and from 1878 to 1891. The dominant figure of Canadian Confederation, he had a political career that spanned almost half a century. Macdonald was born in Scotland; when he was a boy his family immigrated to Kingston in the Province of Upper Canada (today in eastern Ontario). As a lawyer, he was involved in several high-profile cases and quickly became prominent in Kingston, which elected him in 1844 to the legislature of the Province of Canada. By 1857, he had become premier under the colony's unstable political system. In 1864, when no party proved capable of governing for long, Macdonald agreed to a proposal from his political rival, George Brown, that the parties unite in a Great Coalition to seek federation and political reform. Macdonald was the leading figure in the subsequent discussions and conferences, which resulted in th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
