Description
This course examines in detail the five key property valuation methods: comparison, investment, residual, profits, and cost-based. It aims to develop the skills required to undertake valuations of the most common property types, namely residential offices, retail and industrial. It aims to enable you to develop a sound understanding of these methods and their application.
This course is most suitable for delegates employed in real estate, commercial property management, valuation, property development and associated professions who wish to gain a fundamental knowledge of the most commonly used valuation methods.This is also suitable for other professionals who need to work with commercial valuations on a day to day basis, including those from a non-valuation background who use valuations as part of their decision-making process.
Course objectives
At the end of this course you should be able to:
- identify the reasons for valuations, who uses them and how, and the different bases on which they may be prepared;
- explain the rationale behind the five valuation methods (comparison, investment, residual, profits, and cost-based);
- practice applying methods of valuation.
Time commitment
The total estimated study time for completing this course is 35 hours. It is recommended that delegates spread their studies over six weeks, working up to a maximum of 6 hours’ study per week.
This estimate includes time for you to read or view a resource more than once, as well as time for you to take notes and undertake the online assessment.
Course structure
The course content is divided into six topics. These are as follows:
- Introduction to the five valuation methods
- Comparison method
- Investment method
- Residual method
- Profits method
- Costs method
As a fully online, self-managed course you are able to stop and restart the course as you progress. Working at a time and place that suits your needs.
Entry requirements
There are no entry requirements for this course but you are recommended to undertake theIntroduction to Property as an Investment CPD course before this one if you have a limited knowledge of valuation principles.
Certificate
You will be tested with a short multiple choice online quiz at the end of each topic in this course. You can retake each quiz as many times as you like. Once you have passed all of the quizzes, you will be able to download your personal CPD certificate. This certificate is for 35 hours of CPD.
Enrolment details
To enrol today simply “add to basket” and proceed to the checkout to pay by credit card, debit card or PayPal. Individual or corporate bookings welcome.
For payment by invoice or to purchase for multiple delegates, please contact: enquiries@ucem.ac.uk
CPD Enquiries
Got some questions about our CPD programmes or need help with your registration? Get in touch with our friendly admissions team using the following details:
UK (Free): 0800 019 9697 (Press 1)
International: +44 (0)118 921 4696 (Press 1)
Email: enquiries@ucem.ac.uk
UCEM alumni?
Alumni discount is available on this CPD course. Don’t forget to input your UCEM alumni code to gain 15% discount on the full sale price of this product. Contact alumni@ucem.ac.uk to receive your alumni discount.
Technical Requirements
In order to maximise your learning experience, you will need access to:
• a personal computer, laptop, tablet or mobile device with audio & video playback capability
• access to the Internet (via a broadband connection recommended)
Be able to
• use an up-to-date web browser (for example):
Google Chrome, Mozilla Firefox, Apple Safari, Microsoft Edge
• open PDF documents using software such as Adobe
Please be aware if using a system within a firewall you may need your IT Team to allow pop-ups and access to YouTube.
Technical Assistance:
Should you require any technical assistance please contact academysupport@ucem.ac.uk
Interested in studying Real Estate further?
Check out the details of our BSc Real Estate Management programme on the main UCEM Website , or listen to David Hunt one of our module leaders as he explain why he’d recommend a career in real estate.
FAQs
These are as follows:
- Introduction to the five valuation methods.
- Comparison method.
- Investment method.
- Residual method.
- Profits method.
- Costs method.
METHODS OF VALUATION
- Residual Method.
- Investment Method.
- Comparative Method.
- Profit Method.
- Contractor Method.
This module examines the traditional property valuation methods: comparative, investment, residual, profits and cost-based.
What is the easiest valuation model? ›
Market Capitalization
Market capitalization is one of the simplest measures of a publicly traded company's value. It's calculated by multiplying the total number of shares by the current share price.
What are the 5 most common types of inventory valuation methods? ›
The First In, First Out (FIFO), Last In, First Out (LIFO), First Expired, First Out (FEFO), Weighted Average, and Specific Identification are the five most popular methods for valuing inventories.
What is the best valuation method? ›
More often than not, business valuation professionals use at least two methods when valuing companies, the most common being the DCF method and comparable transactions. These methods are popular because they're widely understood, but also because the underlying numbers are easier to obtain.
What are the methods of valuation? ›
Three main types of valuation methods are commonly used for establishing the economic value of businesses: market, cost, and income; each method has advantages and drawbacks. In the following sections, we'll explain each of these valuation methods and the situations to which each is suited.
What are the basics of valuation? ›
The Basics of Business Valuation
A business valuation might include an analysis of the company's management, its capital structure, its future earnings prospects or the market value of its assets. The tools used for valuation can vary among evaluators, businesses, and industries.
What is the formula for valuation? ›
The formula for valuation using the market capitalization method is as below: Valuation = Share Price * Total Number of Shares. Typically, the market price of listed security factors the financial health, future earnings potential, and external factors' effect on the share price.
What is the most common valuation method? ›
1. Multiples, or Comparables approach. This approach is by and large the most common approach to valuing businesses. This is mainly due to the fact that it is a straight-forward and easy to understand method.
Methods for valuing private companies could include valuation ratios, discounted cash flow (DCF) analysis, or internal rate of return (IRR). The most common method for valuing a private company is comparable company analysis, which compares the valuation ratios of the private company to a comparable public company.
Why is valuation difficult? ›
Subjective assumptions, illiquid shares, limited transparency, and the power of controlling owners are some of the difficulties in valuing private companies.
Which method of valuation is the most accurate and why? ›
In the sales comparison, or market, approach, value is estimated by comparing the subject property to similar properties that have sold. The sales comparison approach often produces the most reliable evidence of RMV because sales are based on the actions of buyers and sellers in the marketplace.
What are the two most common valuation methods? ›
The asset approach method is useful in valuing real estate, such as commercial property, new construction, or special-use properties. Next is the income approach, with the discounted cash flow (DCF) being the most common. A DCF is the most detailed and thorough approach to valuation modeling.
What are the most common valuation methods? ›
Company Valuation Approaches
When valuing a company as a going concern, there are three main valuation techniques used by industry practitioners: (1) DCF analysis, (2) comparable company analysis, and (3) precedent transactions.
What is the most popular method of valuation? ›
Multiples, or Comparables approach
This approach is by and large the most common approach to valuing businesses. This is mainly due to the fact that it is a straight-forward and easy to understand method. The valuation formula used is fairly basic once you have the right inputs.
What are the 4 bases of valuation? ›
' The only bases specifically settled by IVS and recognised in Red Book Global Standards are: market value (VPS 4.4) market rent (VPS 4.5) investment value (VPS 4.6) equitable value (previously known as... Explore the subscription options here to get full access to isurv, including downloads.
What are the three 3 commonly used business valuation approaches? ›
The three widely used valuation methods used in business valuation include the Asset Approach, the Market Approach, and the Income Approach.
