Home  Journals  Finance and Credit  46(382) - 2009 December

Valuation of assets that doesn’t generate cash flow

Available online: 14 December 2009

Subject Heading: Financial management

JEL Classification: 

Soon after everybody understood the gravity of consequences which were brought by the world economic crisis, the question on adequacy of market value of different assets estimated basing on different prices of the offer, price indexes and other indicators became very serious. In the presented research the full algorithm of application of DCF-method for the estimation of real (non-financial) assets which don’t generate a regular positive cash flow is developed and illustrated for the first time. The method is based on statistical processing of actual retrospective dynamics of the prices of offer on the land plots, taking place in Moscow area from the beginning of 2000 till the end of 1st quarter 2009, i.e. during the period of active formation of the market of corresponding land plots. The given method has a special urgency during the crisis period.

Keywords: valuation, income approach, market value, land plots

View all articles of issue

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 30, Iss. 4 April 2024

Archive