Market (Comparative) Approach
The second approach is based on data on recent transactions with similar properties in the market and comparison of the property being valued with a similar one. In other words, the evaluated organization or object has the same value as goods with similar or completely identical characteristics. The functions of the enterprise must be carried out under the same conditions as the functions of the comparative object.
The second approach is based on data on recent transactions with similar properties in the market and comparison of the property being valued with a similar one.
- The approach includes the following methods:
- The method of the transaction.
- Method of industry coefficients.
- Spending (property) method.
- Method of accumulation of assets.
- The method of net assets.
- Method of replacement cost.
Before you start working with methods, you need to have all the information about the status of the organizations to be compared and the state of the enterprise being evaluated. The main method is the transaction method and the method of industry coefficients.
The method of transactions is an analysis of the cost of the acquisition of stakes, which are compared by the organization, or an analysis of the acquisition price of the enterprise as a whole.
Concepts and definitions
Property. Determination of the categories of property used as collateral
Basic definitions, concepts, terminology used in the valuation of property
Determination of the values used in valuation
Overview of the legislative framework. Basic requirements and provisions in accordance with the legislation of the Russian Federation
- Types of risks inherent in securing a loan
- Monitoring of credit security risks
- Approaches to the calculation of value
- General requirements for the content of evaluation procedures
- Profitable approach (for each category of property)
- Time value of money
- Capitalization and discounting of cash flows
Capitalization and discounting rates
Calculation of net cash flows. Building a financial model
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Practical assignments By the decision of the Arbitration Court of the Republic of Tatars tan of April 11, 2017 (the date of the resolution) in case No. A65-5821 / 2017 Public Joint Stock Company Tatfondbank (PJSC Tatfondbank), hereinafter referred to as Bank, OGRN 1021600000036, INN 1653016914, registration address: 4420111, Republic of Tatars tan, Kazan, ul. Chernyshevsky, 43/2, was declared insolvent (bankrupt) and openly bankruptcy proceedings were opened against him in accordance with Federal Law No. 127-FZ of October 26, 2002 “On Insolvency (Bankruptcy).” Functions of the bankruptcy trustee are assigned to the state corporation “Deposit Insurance Agency” (hereinafter – the Agency).
In accordance with paragraph 1 of Article 139 of Federal Law No. 127-FZ “On Insolvency (Bankruptcy)” of October 26, 2002, the Agency publishes the results of the evaluation.
Appraisal activity for today has firmly entered our life. For successful business, the implementation of various business transactions, transactions without professional assessment is indispensable.
There is an obligatory assessment, the list of cases of which was determined by Article 8 of the Law of the Russian Federation “On Valuation Activities in the Russian Federation”. And also there is a voluntary evaluation. The situation with the latter is much more mandatory. They cover almost all areas of business. Let us dwell in more detail on each of the above-mentioned types of valuation of property.
Mandatory evaluation of property is needed in the event that the transaction involves certain specific objects belonging to the Russian Federation, its subjects and municipalities.
This can occur usually in a number of the following cases:
- When the object is sold or other alienation;
- For the purpose of privatization, when the object is transferred to trust management, or for rent;
- When transferring property as an investment in the charter capital, or funds of legal entities;
- When using the object as a subject of pledged items;
- In case of assignment of debt obligations related to objects in state ownership, property of a subject of the Federation or municipal property;
Other cases, which are stipulated by the legislation. It is necessary to remember the mandatory assessment during privatization. Privatization for today has not lost its relevance. For a very long time, the state will remain the largest owner of real estate. In the process of privatization and corporatization, the enterprise passes from state ownership to private ownership. An independent appraisal of the price of the property is needed here to estimate the value of the property of the privatized enterprise without bias.
All other cases of mandatory assessment are based on existing legislation. Here are some of them:
When entering into the charter capital of a joint-stock company, the property needs to estimate the market price of shares paid by non-monetary funds
In the situation of the purchase of shares by the joint-stock company at the request of shareholders
When selling the enterprise or part of the debtor’s property in the period of not internal management, when selling the property in the course of bankruptcy proceedings.