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.

scholarly journals Estimation methods of the agricultural equipment value with regard toevaluation of Alina carrot harvester

2018 ◽  
Vol 10 ◽  
pp. 01011 ◽  
Author(s):  
Zbigniew Kowalczyk ◽  
Michał Cupiał
Keyword(s):  
Price Adjustment ◽  
Estimation Methods ◽  
Comparative Approach ◽  
Average Price ◽  
Adjustment Method ◽  
Cost Approach ◽  
Agricultural Equipment ◽  
Replacement Method ◽  
Methods Of Evaluation ◽  
The Cost

The objective of the paper is to present methods of evaluation of real estates used for evaluation of agricultural equipment and types of value related thereto. Alina carrot harvester by Waremczuk company served as an example, for which a detailed methodology and the results of valuation were presented. Evaluation was carried out based on two approaches namely a comparative and cost approach. In the case of the comparative approach, the average price adjustment method was used and in the case of the cost approach - a replacement cost method.As a result of using various approaches and methods of evaluation two slightly different values of the evaluated harvester were obtained. It was respectively: EUR16,406 - at the use of the average price adjustment method and EUR 17,678 - the estimated net replacement value in the cost approach for the replacement method.

Main approaches to estimating the cost of shareholder equity of oil and gas producers

2020 ◽  
Vol 26 (3) ◽  
pp. 685-697
Author(s):  
O.V. Shimko
Keyword(s):  
Oil And Gas ◽  
Oil Prices ◽  
Minimum Cost ◽  
Free Cash Flow ◽  
Annual Reports ◽  
Comparative Approach ◽  
Economic Activities ◽  
Advantages And Disadvantages ◽  
Oil And Gas Producers ◽  
The Cost

Subject. The study analyzes generally accepted approaches to assessing the value of companies on the basis of financial statement data of ExxonMobil, Chevron, ConocoPhillips, Occidental Petroleum, Devon Energy, Anadarko Petroleum, EOG Resources, Apache, Marathon Oil, Imperial Oil, Suncor Energy, Husky Energy, Canadian Natural Resources, Royal Dutch Shell, Gazprom, Rosneft, LUKOIL, and others, for 1999—2018. Objectives. The aim is to determine the specifics of using the methods of cost, DFC, and comparative approaches to assessing the value of share capital of oil and gas companies. Methods. The study employs methods of statistical analysis and generalization of materials of scientific articles and official annual reports on the results of financial and economic activities of the largest public oil and gas corporations. Results. Based on the results of a comprehensive analysis, I identified advantages and disadvantages of standard approaches to assessing the value of oil and gas producers. Conclusions. The paper describes pros and cons of the said approaches. For instance, the cost approach is acceptable for assessing the minimum cost of small companies in the industry. The DFC-based approach complicates the reliability of medium-term forecasts for oil prices due to fluctuations in oil prices inherent in the industry, on which the net profit and free cash flow of companies depend to a large extent. The comparative approach enables to quickly determine the range of possible value of the corporation based on transactions data and current market situation.

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 Reformasi zakat pertanian (Studi di dusun Jeblok desa Brudu kecamatan Sumobito kabupaten Jombang)

2019 ◽  
Vol 19 (2) ◽  
pp. 185-203
Author(s):  
Ilham Thohari ◽  
Moh. Makmun
Keyword(s):  
Islamic Law ◽  
Field Research ◽  
Rice Fields ◽  
Comparative Approach ◽  
Conceptual Approach ◽  
Interesting Phenomenon ◽  
Application Of Law ◽  
Agriculture Land ◽  
The People ◽  
The Cost

This research was motivated by the reveal of the phenomenon in Jeblok, Brudu Village, Sumobito District, Jombang Regency. In this village, the people object to the level of agricultural zakah that has to pay regarding the high costs of cultivating rice fields. It is interesting phenomenon whereas this village has a wide agriculture land for about 47, 48 acres. This was field research by using descriptive-analytic methods. This type of research was qualitative by applying a comparative approach between the case approach and the conceptual approach and the Maqashid Shari'ah approach. The results showed that the potential of agricultural zakat in Jeblok, Brudu Village, Sumobito District, Jombang Regency is very large. However, farmers argue about levels of agricultural zakah that must be paid. They feel that 5% and 10% are too burdensome because of the high cost of processing rice fields. Therefore, the people demand equal tariff between agriculture zakah level and trade zakah because both require capital to manage. In this case Islamic law is sociological-anthropocentric which is very concerned with aspects of the application of law within the scope of society. In general, the nature of Islamic law is elastic and not rigid, so that tariffs or levels of agricultural zakat which are very expensive (5% or 10%) can be changed to be more affordable for the community. Therefore, through the maqashid shari'ah approach, the level of agriculture zakah can be set into 2.5% following the level of zakah trade after deducting the cost of cultivating rice fields.

Sign in / Sign up

Export Citation Format

Share Document