Value and worth: scenario analysis

Abstract

Purpose

This paper sets out to look at “calculation of worth” as it relates to valuations.

Design/methodology/approach

A number of pricing models and valuation methods are analysed. Forecasting is also considered.

Findings

It is possible to adapt the discounted cash flow (DCF) method to incorporate subjective predicted growth rates. In the case of a rack‐rented freehold, the DCF method produces the same value as the traditional method.

Originality/value

This paper looks at “testing the assumptions”.

Citation

French, N. (2006), "Value and worth: scenario analysis", Journal of Property Investment & Finance, Vol. 24 No. 2, pp. 176-179. https://doi.org/10.1108/14635780610655111