Valuaties

Valuaties are formal appraisals conducted by qualified valuers to estimate the monetary value of assets, businesses, or projects. They are used in real estate transactions, corporate finance, taxation, insurance, litigation, and regulatory compliance. Valuaties can cover tangible assets such as land, buildings, machinery, and artwork, as well as intangible assets like brands, intellectual property, and goodwill, and they may assess entire companies or investment projects.

Common types include real estate valuations (residential and commercial), business valuations (enterprise value and equity value), personal property valuations (art, jewelry, collectibles), and financial instrument valuations. The valuation result typically expresses a value opinion, a value range, or a specific conclusion of value, supported by the chosen methodology, data sources, and explicit assumptions and limitations.

Valuation methodologies fall into several categories. The market approach compares the asset with recent sales or prices of similar assets. The income approach estimates value from expected future benefits, often via discounted cash flow or capitalization rates. The cost approach estimates value based on the current replacement cost minus depreciation. For intangible assets, specialized methods may be used.

Valuations are guided by professional standards such as International Valuation Standards (IVS), USPAP in the United States, or the RICS Red Book. Independence, qualifications, and documented procedures are essential. Valuation reports include the scope, data sources, methods, conclusions, and any limitations, and they are not guarantees of price but reasoned estimates used to inform decisions.