AN EXAMINATION OF METHODS OF VALUATION USED IN SINGAPORE

Abstract

The practical limitations of the conventional valuation approaches have been recognised by both the academics and the practitioners. However the reactions from both sides have been in opposite directions. Academics dismiss conventional methodology as over-simplistic and advocate increased sophistication. The practitioners on the other hand favour simplicity and methods which are easily understood. This dissertation takes the stand that both schools are actually complementary, not contradictory. Both recognise the illogic of certain assumptions used in the conventional methods. The field of investment counselling represents an opportunity to put academic sophistication into practice. Recognition of the need for objectivity in market-valuation is a compelling reason for the practitioners to improve upon the methods of collection and analysis of market information