Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/160916
Title: INVESTMENT METHOD OF VALUATION- A REAL VALUE APPROACH
Authors: WONG CHIN VEW
Keywords: Valuation
Inves tment
Inflation
Real Growth
Yields
Explicit Growth
Implicit Growth
Issue Date: 1986
Citation: WONG CHIN VEW (1986). INVESTMENT METHOD OF VALUATION- A REAL VALUE APPROACH. ScholarBank@NUS Repository.
Abstract: The conventional investment method of valuation has been long established and widely used by surveyors especially in the United Kingdom. Unfortunately, it is not commonly used in Singapore. This method suffers from a number of weaknesses in its concept and its application. Due to the weaknesses in this method of valuation, researches have been carried out. This has led to some modifications of the conventional method of valuation, in particular to the Double Sinking Fund method, the Annual equivalent method, the Sinking Fund method, the Pinell's method etc. In addition, a modern approach was evolved commonly known as the Discounted Cash Flow (DCF) approach. The aim of this dissertation is to study the Real Value Model first initiated by Dr. Ernest Wood more than ten years ago. It was subsequently modified by Mr. Neil Crosby. This study is intended to be the beginning and not the end of this subject. Thus, where possible, issues will be highlighted for further research. This dissertation provides an explanation of the concept of Real Value as used in the Real Value Approach. It indicates how inflation can affect a series of incomes. By using the Real Value concept, a discounting formula is derived for its application in the investment method of valuation. The formula is then applied in a case study to illustrate how it can be applied in Singapore. In the case study, three methods are used and the results are compared to check on the reliability of the Real Value Approach. From the study, some of the usefulness of the Real Value Approach were encountered and these are highlighted.
URI: https://scholarbank.nus.edu.sg/handle/10635/160916
Appears in Collections:Bachelor's Theses

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