27-04-2014, 07:56 PM
(26-04-2014, 12:02 PM)Ferns Wrote: Or does this mean to say, it's very hard to apply DCF valuation to real estate developers and so, just stay away from that form of computation?
Asset-base approach is sometimes used to value real estate companies.
Restate assets and liabilities to current values for net asset value (RNAV)
–Restate individually (discrete valuation) or collectively (collective valuation)
–Value of assets derived from
1) cost of replacement with identical or equivalent
2) May also be derived from future generating income potential or liquidation value.
–Often done by valuation experts. (But beware of their valuation)