What are the basic methods of asset appraisal?

Market method, income method and cost method

Market method: the general name of various evaluation techniques and methods to estimate the value of assets through direct comparison or analogy analysis by using the recent transaction prices of the same or similar assets in the market.

Income method: the general name of various evaluation methods to judge the value of assets by estimating the present value of the expected future income of the assets being evaluated.

Cost method: refers to all kinds of evaluation methods that estimate the replacement cost of the appraised assets first, then estimate the derogatory factors of the appraised assets, and deduct the value of the appraised assets from the replacement cost.

(A) the link between the asset appraisal methods

The ways and methods of evaluation are the means to achieve the purpose of evaluation. For a specific economic behavior, under the same market conditions, the evaluation value of the same asset in the same state should be objective, and this objective evaluation value will not produce completely different results because the appraisers choose different evaluation methods and methods, because the basic purpose of evaluation determines the internal relationship between evaluation methods and methods. This internal relationship provides a theoretical basis for appraisers to use various evaluation methods and methods to evaluate the same asset under the same conditions, and also provides a theoretical basis for mutual verification. When evaluating the same asset with different evaluation approaches and methods, we should ensure the consistency of evaluation purpose, evaluation premise and evaluation object status, as well as the rationality of economic and technical parameters selected by different evaluation approaches and methods.

Because of the consistency of the basic objectives of asset evaluation, there are many ways and methods to evaluate the same asset. If the preconditions for using these approaches and methods are met at the same time, and the appraisers also have the corresponding professional judgment ability, then the results obtained by various approaches and methods should be similar. If the results obtained by using various evaluation approaches and methods are quite different, the possible reasons are as follows: First, the preconditions for the application of some evaluation approaches or methods are not available; Second, the analysis process is flawed; Third, there are problems in structural analysis; Fourth, some information bases supporting the evaluation results are distorted; Fifth, the appraiser's professional judgment is wrong. Therefore, the evaluator should establish a logical analysis block diagram for different evaluation approaches and methods, and through comparative analysis, it is helpful to find problems. On the basis of finding the problems, the appraisers should not only choose the evaluation approach or method, but also analyze the causes of the problems, study the corresponding solutions and finally determine the evaluation value.

(B) differences in asset appraisal methods

Various evaluation approaches and methods reflect the value of assets from different angles. Whether we get the value of the appraised object by comparing it with the market reference, discount it according to the expected income of the appraised object, or seek the value of the appraised object according to the way of regaining assets, it is a description of the value of the appraised object under certain conditions, and they are intrinsically related and can replace each other. However, each evaluation method has its own application process, which requires the corresponding information base, and the evaluation conclusion also reflects the value of assets from a certain angle. Therefore, various evaluation approaches and methods are different.

Due to different specific purposes of appraisal, different market conditions, different settings of the use status of the appraised object and different types of assets to be appraised. Because of its own characteristics, there are differences in efficiency and directness in evaluating the value of different types of assets. Evaluators should have the ability to choose the most direct and efficient evaluation method to complete the evaluation task.

(C) the choice of asset evaluation methods

In fact, the selection of evaluation methods includes the selection process of asset evaluation methods at different levels, that is, the selection at three levels: the first level is the level of evaluation technology thought, that is, the applicability of the evaluation technology thought on which the three evaluation methods are based is analyzed; The second level is to choose the specific technical methods to realize the evaluation technology on the basis of various evaluation concepts; The third level is the selection of technical parameters designed by various technical evaluation methods on the premise of determining technical methods.

The diversity of ways and methods of asset appraisal provides realistic possibility for appraisers to choose appropriate ways and methods and effectively complete the appraisal task. In order to estimate the value of assets efficiently, simply and reasonably, we should pay attention to the following factors in the process of selecting evaluation approaches and methods: firstly, the selection of evaluation methods should be suitable for the purpose of evaluation, the market conditions at the time of evaluation, the state of the appraised object in the evaluation process and the type of asset evaluation value determined; Secondly, the choice of evaluation method is restricted by the evaluation object and type, physical and chemical state and other factors. For example, for assets with neither market reference nor operating records, only the cost method and its method can be selected for evaluation; For enterprises with special technology and operating, priority can be given to income channels and methods; Thirdly, the selection of evaluation methods is restricted by the data and information needed for the application of various evaluation methods and whether the main economic parameters can be collected.

The application of each evaluation method needs to be based on sufficient data. In a relatively short period of time, it may be difficult to collect the data needed for an evaluation approach and method. In this case, the appraisers should consider other evaluation ways and methods.

In short, in the process of selecting evaluation methods, we should pay attention to local conditions and make the best use of the situation, and we can't choose according to a certain model or order mechanically. However, no matter which evaluation approach and method is chosen for evaluation, the purpose of evaluation should be guaranteed, and the assumptions and conditions on which evaluation is based are consistent in nature and logic with various parameter data and evaluation results used in evaluation. Especially when evaluating the same evaluation object with multiple evaluation approaches and methods, it is necessary to ensure the comparability of various assumptions, preconditions and data parameters based on the application of each evaluation approach and method, so as to ensure the comparability and mutual verifiability of evaluation results obtained by different evaluation approaches and methods.