The principal valuation approaches are:
(a) market approach,
(b) income approach, and
(c) cost approach.
The goal in selecting valuation approaches and methods for an asset is to find the most appropriate method under the particular circumstances. No one method is suitable in every possible situation. The selection process should consider, at a minimum:
(a) the appropriate basis(es) of value and premise(s) of value, determined by the terms and purpose of the valuation assignment,
(b) the respective strengths and weaknesses of the possible valuation approaches and methods, (c) the appropriateness of each method in view of the nature of the asset, and the approaches or methods used by participants in the relevant market, and
(d) the availability of reliable information needed to apply the method(s). Valuation in Lviv
septima | May 13, 2022, 6:39 p.m.