The misuse of DCF analysis
Fiedler, L.
The misuse of DCF analysis - 1992 - Real Estate Review 22 (1) Spring 1992, 18-22(5) .
Argues that lenders and investors have misunderstood real estate values over the past 15 years, which had they been more aware of the elements of real estate valuation, might have been able to avoid the current slump in the US commercial property market. This article sets out to examine why real estate investors and financiers were unable to establish an understanding of the value of income-producing real estate. Looks at changing valuation techniques and the influence of DCF (discounted cash flow) on appraisal decisions.
APPRAISAL TECHNIQUES
DISCOUNTED CASH FLOW
ECONOMIC ANALYSIS
ECONOMICS
FINANCE
INTERNAL RATE OF RETURN
IRR
PROPERTY INVESTMENT
VALUATION METHODS
The misuse of DCF analysis - 1992 - Real Estate Review 22 (1) Spring 1992, 18-22(5) .
Argues that lenders and investors have misunderstood real estate values over the past 15 years, which had they been more aware of the elements of real estate valuation, might have been able to avoid the current slump in the US commercial property market. This article sets out to examine why real estate investors and financiers were unable to establish an understanding of the value of income-producing real estate. Looks at changing valuation techniques and the influence of DCF (discounted cash flow) on appraisal decisions.
APPRAISAL TECHNIQUES
DISCOUNTED CASH FLOW
ECONOMIC ANALYSIS
ECONOMICS
FINANCE
INTERNAL RATE OF RETURN
IRR
PROPERTY INVESTMENT
VALUATION METHODS