The misuse of DCF analysis
Language: English Series: Real Estate Review ; 22 (1) Spring 1992, 18-22(5)Publication details: 1992Subject(s): Summary: 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.| Item type | Current library | Call number | Copy number | Status | Barcode | |
|---|---|---|---|---|---|---|
| Journal article | London Journal article | ABS46051 (Browse shelf(Opens below)) | 1 | Available | 56578-1001 |
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.