The Cost Approach Triad in Property Valuation

2008 ◽  
Author(s):  
Andrey Igorevich Artemenkov
Keyword(s):  
Cost Approach ◽  
Property Valuation ◽  
The Cost

scholarly journals Market-based methods of estimation of loss of value intellectual property at enterprises of the fuel and energy sector

2020 ◽  
Vol 216 ◽  
pp. 01174
Author(s):  
M.A. Mahkamova
Keyword(s):  
Intellectual Property ◽  
Cost Of Reproduction ◽  
Energy Sector ◽  
Property Value ◽  
Market Conditions ◽  
Cost Approach ◽  
Property Valuation ◽  
Approach Method ◽  
The Cost ◽  
Fuel And Energy Sector

The issues of assessing the loss of intellectual property value in the market conditions at energy sector enterprises are studied. The cost approach method is revealed, which implies taking into account the cost of reproduction of the intellectual property being valued in current prices less depreciation, as the most effective method of intellectual property valuation. The article suggests the author's approach to grading the estimation of lost utility of intellectual property.

Methods of valuation for an Internet business

2017 ◽  
Vol 30 (1) ◽  
pp. 83-89
Author(s):  
E. S. Epifanov ◽  
N. Z. Atarov
Keyword(s):  
Comparative Approach ◽  
Cost Approach ◽  
Income Approach ◽  
Internet Business ◽  
The Cost

This article presents a description of the main methods of valuation Internet business: a comparative approach, the income approach, the cost approach; and provides guidance on the valuation of Internet projects.

Valuing specialised property: cost vs profits method uncertainty

2016 ◽  
Vol 34 (6) ◽  
pp. 655-663 ◽  
Author(s):  
David Jansen van Vuuren
Keyword(s):  
Model Uncertainty ◽  
Joint Venture ◽  
Mortgage Lending ◽  
Content Type ◽  
Cost Approach ◽  
Study Approach ◽  
Start Up ◽  
Valuation Uncertainty ◽  
The Cost ◽  
Business As Usual

Purpose The purpose of this paper is to compare the value outcomes of the cost approach to the DCF profits method when valuing specialised property under different scenarios as a test for choice of method or model uncertainty; and to quantify valuation uncertainty under each scenario and to argue for an increasing adoption of the profits method of valuation. Design/methodology/approach A qualitative case study approach was used to analyse four physical valuations performed in practice under four specific scenarios, namely, a business-as-usual scenario, an underperforming business scenario, an expanding capacity scenario and a combined business-as-usual funding a start-up joint venture scenario. Findings The cost approach relative to the DCF profits approach consistently under-values specialised property under business-as-usual and business expanding scenarios while it over-values in instances of underperforming business scenario. Practical implications Financial institutions that predominantly uses or accepts the cost approach for valuing specialised property should consider adopting the DCF profits approach as the default approach when valuing for mortgage lending purposes. Business owners of specialised properties should contract practitioners knowledgeable and skilled in the application of the DCF profits method. Originality/value This paper quantifies choice of method or model uncertainty of four different scenarios of specialised properties where both the cost approach and DCF profits methods of valuation were employed. It suggests the adoption of the DCF profits method as the default method of valuation for specialised property.

Technical Assessment of Constructions in Real Estate Appraisal

2017 ◽  
Vol 21 ◽  
pp. 639-646 ◽  
Author(s):  
Svetlana Albu
Keyword(s):  
Real Estate ◽  
Modern Society ◽  
The Real Estate ◽  
Real Estate Appraisal ◽  
Cost Approach ◽  
Technical Assessment ◽  
The Cost ◽  
The Impact ◽  
Over Time

One of the modern society priorities is the tendency towards sustainable social and economic development. Sustainable development is possible through the preservation and efficient use of the values created by our ancestors and the ability to meet current needs so as not to endanger the ability of future generations to meet their own needs. Real estate appraisal activity evaluates the changes in property value over time. Physical or legal actions on the property are justified only if the future value is not affected.Theory and practice of appraisal activity quantifies three approaches to value:The Sales Comparison Approach – value is examined in terms of current market preferences;The Income Approach – determine the income the property is expected to generate over time as a result of the most probable use;The Cost Approach – value is perceived in terms of replacement cost of real estate with one with comparable utility.Technical assessment of constructions is applied as a rule mainly in the cost approach, and has a major impact on the estimate of market value. The role of technical assessment is reduced, even ignored and not taken into account in other approaches.The present research examined the role of technical assessment of constructions in the process of real estate appraisal and the impact of inspection on the real estate value.

scholarly journals VALUATION OF AERONAUTICS AND SPACE TECHNOLOGY AT LAPAN

2019 ◽  
Vol 4 (01) ◽  
pp. 1
Author(s):  
Erni Br Simanjuntak ◽  
Gede Harja Wasistha
Keyword(s):  
Intellectual Property ◽  
Jel Classification ◽  
Competitive Advantages ◽  
Space Technology ◽  
Property Market ◽  
Capital Theory ◽  
Property Valuation ◽  
Quantitative And Qualitative Research ◽  
Valuation Method ◽  
The Cost

<p><em>New challenges arises for government institutions engaged in research and engineering to continuously innovate and develop technologies that have competitive advantages and provide income for the country through royalty from licensed technology. This research carried out to valuate the aeronautics and space technology. The objective of the study is to develop appropriate intellectual property valuation methods. This research is a case study utilizing sequential mix method which is the combination of quantitative and qualitative research. By using intellectual capital theory, this research-broaden the literatures on the technology valuation in the field of aeronautics and space. This study fills research gap on the existing technology valuation method that is still partially conducted by government research and development. </em></p><p><em>This study discusses the value of intangible assets and licenses from intellectual property that are calculated through three valuation approaches, such as cost-based approach, income-based approach, and market-based approach. The results of the study show that the most appropriate intellectual property valuation method are the cost-based approach and income-based approach.</em></p><p><strong><em>JEL Classification: </em></strong><em>O30, O31, O33</em><strong></strong></p><strong><em>Keywords</em></strong>: <em>Cost Based Approach,</em><em> Income Based Approach, Intellectual Property, Market Based Approach, Sequential Mix Method </em>

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