Asset Valuations Process

Learn more about the Asset Valuations Process.

What is an Asset Valuations Process?

The Asset Valuations process identifies the worth of an asset. Assets vary from cars, trucks and yellow goods all the way to submarines. Furthermore, the asset valuation is the process of determining the Market Value of an asset in a specific point in time.

Asset Valuations Group follow the International Valuation Standards Council when valuing all assets. A postulate of sound investing is that an investor does not pay more for an asset than it is worth. Perceptions of value have to be based on the basis of facts and figures, as the price paid should reflect the future cash flows generated by the asset.

What methods are used?

The most common approached used when valuing an asset is the Cost Approach. The cost approach derives different methods, but the most common method used in the Asset Method. The Asset Method takes in to consideration comparable sales of similar assets to determine the actual Market Value.

The Asset Valuations Process considers the purpose, the date of valuation, and who the intended users are. Furthermore, it assesses the factors affecting valuation, the basis of value (market value of forced sale value) or both. The most common basis of value is Market Value, utilising the asset method.

Who needs an Asset Valuation?

People from all walks of life need a valuation on their assets. More than “who needs a valuation”, why do they need a valuation? The most common reasons for needing a valuation are budgeting, raising investment capital, accounting, to determine the correct tax liability for your business/company, and in litigation. There are many other reasons why an asset valuation is needed.

If you require a valuation on your assets, contact Asset Valuations for more information here!

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