Valuation services are the services provided for determining and analysing property assets with the current fair market value.
A valuation analyses the required company assets and provides mergers, depositions, financial statements, and transaction history.
This helps in knowing the certain property value so you can decide to sell or buy within the prospective companies.
Why is valuation necessary?
- Valuating your prominent assets is necessary to understand the market values and comparisons.
- In a community, the valuation of your organisation creates a certain value that decides the business value in the market.
- By analysing the financial reports, you can conclude the asset value.
- This process makes you understand the transparency of the company's financial history, transaction history, and standards.
- You can compare the asset value with other organisations and learn about the different market values.
Standards to be followed/ Valuers and Appraisers in Jaipur
Like every other financial reporting and analysis, certain standards are to be followed to value the proposed asset of the company. These standards include the following.
Fair Market value
- This is the decided market value that the buyer and the seller decide upon.
- The investor will be paying a fixed amount to the asset.
- Both buyer and the seller will determine the market value.
- This will be based on the knowledge of the current market value and comparison to different companies.
- Also known as the strategic value, it is the price that the investor proposes.
- Once the investor values the asset, it is called the investment value.
- This is later talked through to attain a fair market value.
- This is the financial statement value of the property declared by the company itself.
- This can also be called market value.
- Intrinsic value is the original value of the asset that the company determines.
- This is different from the original market value.
Types of valuation services:
Valuation services include variations based on categories and requirements.
- Under this type of valuation, the business properties, tangible and intangible properties, payment shares, investment details, and such are valued.
- The entire organisation's financial reports are valued to attain a fair market value.
- Asset valuation concentrates on a particular asset provided. The value of attaining is determined in the market.
- The asset's value is compared to other organisations to prepare a fair market value and understand its demand of value.
Valuation Advisory Services:
- These services include the company's financial statements, risk assessment, and portfolio reports for future security.
- The entire transactions of the company are included.
Infrastructure/ Project Finance Advisory:
- This includes the debts taken, loans applied, projects attained, bidding for properties and projects, transactions, and financial statements regarding all the information.
Different methods of valuation:
1. Market method:
EBIT (Earnings Before Interest and Tax) is required in this method. EBIT is the tax revenues and the price-earnings ratios of public companies.
It is also known as the correlation technique. Under this, the public company is compared for better understanding. This method is straightforward and real but could be more flexible.
2. Asset method:
This method has a procedure. The entity value of the asset gains by subtracting the current asset value from the liabilities and tangible and intangible assets. Liabilities are the current net cost of the organisation.
Valuation procedure/Approved valuer
- Analysing the value of the asset:
To analyse a certain asset, the data regarding it should be collected (financial and non-financial) carefully. Every little piece of data gives the structure of the asset value.
- Defining the asset value:
Now with the available data, the asset's value is determined by the company. This will be based on the market value price, demand of the asset, and value fluctuations. This leads to different values to determine the asset.
- Selecting the asset value:
The acquired values select a particular, profitable, and reasonable value for the market and then speculate. Keeping in mind the factors and different categorical values, the value is fixed.
- Applying appropriate methods:
The asset is now applied with the valuation methods. The taxes, ratios of the price range, and revenues are calculated. The liabilities are considered methodologies, and a final price value by the company is attained.
- Market price:
After fixing the market value, the asset is evaluated with proper documentation.
This entire process is carried out by a valuator with proper standards and documentation, considering the information provided.
This leads to a significant asset value in the market, which makes it direct. This valuation procedure creates a transparent and honest approach to the market and beneficiary for prospects as well.
ESPECIA valuation services:
Especia services are located in the heart of the country and spread all over the country with its vast services.
With well-trained professionals with specialised skills, this service provides optimal valuation services.
With a record of completing 250 valuation services, it is one of the country's prominent valuation services.
Known for the entrusted services and friendly reach with the clients, we offer a diverse range of services.
Regarding valuation services, we also provide many other financial services. We interact with you and carefully thoroughly your assets with utmost concentration and clarity.
We provide you with market strategies and information. We ensure the asset's market value is fair and properly documented.
We offer different categorical valuation services with precise procedures and legal documentation.