Traditional Culture Encyclopedia - Hotel accommodation - How to calculate the equity value of a hotel?

How to calculate the equity value of a hotel?

Absolute valuation method and relative valuation method.

1. Absolute valuation method: Absolute valuation method predicts the future cash flow of the hotel on the basis of discounted future cash flow, and discounts the cash flow into present value.

2. Relative valuation method: The relative valuation method evaluates the equity value of hotels by comparing the market value of similar hotels on the basis of comparison.