Why should an asset be valued in terms of the income it will generate in the future

Updated on Financial 2024-04-15
8 answers
  1. Anonymous users2024-02-07

    This is too simple, for example, the market rate of return is 5%, you have an asset that can generate 50,000 yuan of income every year, sell it to the market, how much will others spend to buy it? It must be 1 million, because if it is less than 1 million, such as 900,000, the yield of 900,000 will exceed 5%, and others will definitely come to grab it; If it is higher than 1 million, such as 1.1 million, then the yield of this 110 is less than 5%, why don't others invest in other places. So it's worth 1 million.

    The simple formula is value = income The average market rate of return = 50,000 5% = 1 million.

  2. Anonymous users2024-02-06

    Summary. Hello, I am a special professional respondent: Mr. Linda<> I have seen your message, I am sorting out the answer, and I will reply to your <> within 3 or 5 minutes.

    Hello, I am a special guest professional answerer: Mr. Linda<> I have seen the message of your stool and am sorting out the answers, and the core source will reply to your <> within 3 or 5 minutes

    Hello, the reason why Youhu enterprise valuation is generally evaluated by the income method is because the income method should be the preferred method of enterprise valuation The overall asset refers to the complex with individual profitability, and the overall asset valuation is the evaluation of its profitability, and the income method is to obtain the asset appraisal value after discounting the future income of the asset, which is exactly in line with the characteristics of the overall false asset. Therefore, the income approach should be the primary method of overall asset valuation.

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  3. Anonymous users2024-02-05

    Summary. There are two aspects to the relationship between the value type and the purpose of asset valuation: one is to pay attention to the influence and constraints of relevant conditions such as the purpose of asset valuation on the selected value type from the perspective of correctly selecting the value type; Second, it is necessary to pay attention to the correct selection of value types from the perspective of the selection of value types to achieve the purpose of asset valuation and the satisfaction of other relevant conditions.

    The type of value in asset valuation is the attribute of the asset valuation result and its manifestation. The choice of value type should be constrained by the relevant conditions such as the purpose of the evaluation, or the type of value should be formed on the basis of the relevant conditions such as the purpose of the evaluation. What kind of evaluation conditions are based on, there should be corresponding attributes of assessment results and their manifestations.

    There are two aspects to the relationship between the value type and the purpose of asset valuation: one is to pay attention to the influence and constraints of relevant conditions such as the purpose of asset valuation on the selected value type from the perspective of correctly selecting the value type; Second, it is necessary to pay attention to the correct selection of value types from the perspective of the selection of value types to achieve the purpose of asset valuation and the satisfaction of other relevant conditions. The type of value in asset valuation is the attribute of the asset valuation result and its manifestation.

    The choice of value type should be constrained by the relevant conditions such as the purpose of the evaluation, or the type of value should be formed on the basis of the relevant conditions such as the purpose of the evaluation. What kind of evaluation conditions are based on, there should be corresponding attributes of assessment results and their manifestations.

  4. Anonymous users2024-02-04

    1. Calculation of present value: The income method requires that in the evaluation process, the expected future income of the remaining leased assets needs to be calculated and discounted, so it must be supported by data and methods for calculating the present value.

    2. Sufficient historical data and trends: In order to accurately calculate future returns, it is necessary to have sufficient historical data and information as a basis, and future returns can be deduced from the potential and risks.

    3. Be able to determine the income and law: The premise of the income method evaluation is to be able to determine the income and law of the asset or investment project, so that it can establish a reliable income model.

  5. Anonymous users2024-02-03

    Answer]: CAB two, the market method, also known as the market comparison method or comparative method, refers to the use of the same or similar assets in the market Recent transactions**, through direct or comparative or analogous analysis to estimate the value of assets of various valuation techniques; D, the cost method refers to the total number of valuation methods that first estimate the replacement cost of the assessed asset, then estimate the various depreciating factors existing in the assessed asset, and deduct it from the replacement cost to obtain the value of the assessed asset.

  6. Anonymous users2024-02-02

    It needs to be determined according to the actual situation of the enterprise, although it is too general, but it is true.

    If the enterprise has a large number of market transaction cases, the market method can be used;

    If the company's earnings are relatively reasonably expected, the income approach can be used;

    If the enterprise has no transaction cases, the historical income fluctuates greatly, the development of industry trends is unclear, and it is difficult to be reasonable, then the only way to use the cost method, that is, the asset-based method.

    Enterprise valuation refers to the act and process of analyzing, estimating, issuing professional opinions and writing a report by a registered asset appraiser on the specific purpose of the appraisal base date for the overall value of the enterprise, the value of all shareholders' equity or part of the equity.

    Enterprise valuation is a comprehensive assessment of the overall fair market value of an enterprise as an organic whole, based on the status of all assets owned or occupied by it and the overall profitability, fully considering various factors affecting the profitability of the enterprise, and combining the macroeconomic environment and industry background in which the enterprise is located.

  7. Anonymous users2024-02-01

    1. The main factors that determine the type of asset appraisal value are the purpose of the appraisal, market conditions and the use status of the assessed asset.

    2. The appraised value of assets is different from the specific purpose of the appraisal, and the value meaning is also different, which is manifested in different types of value. The value type refers to the prescriptiveness of the value of the asset appraisal of the old middle stool, indicating the connotation and extension of the value. The type of value and the appraised value of an asset are not two different concepts.

    The results of any assessment are qualitative and quantitative. The appraised value is influenced by the purpose. As the result of asset valuation, the asset appraisal value is jointly affected by the type of value, the market environment and technical parameters, and the influence of the latter two on the appraisal value is due to the application of the method.

  8. Anonymous users2024-01-31

    1. The appraised value is the value of the income of the asset.

    2. It is a method of estimating the value of assets by discounting the expected income of each year (or month) during the remaining life of the assessee at an appropriate discount rate and accumulating it to obtain the present value on the base date of the assessment. The present value of earnings method is commonly used for the overall valuation of profitable companies and the valuation of intangible assets.

    3. This method is the most commonly used abroad and is also the main method of technical asset valuation in China. It is based on the idea that the value of an asset is determined by the benefits of its use, regardless of its cost.

    4. When using the income method for valuation, it should be noted that the income period cannot be indefinite; It is necessary to consider the technical content of the equipment and whether there is a possibility of early elimination of the evaluated equipment by technological progress. The slightest negligence is about to bring risks. In view of the above factors such as the limitation of income, the income method is mostly used as a supplementary method to determine the functional depreciation and economic depreciation of equipment, and at the same time to analyze whether the enterprise has intangible assets in the distribution and transportation beams.

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