What are Valuation Models?

Valuation Models assess the market worth of an asset using mathematical and financial techniques. These models consider income, comparable sales, and cost-based approaches.

• Income Approach: Evaluates revenue potential.
• Comparable Sales Method: Uses recent sales of similar assets for pricing benchmarks.
• Cost Approach: Estimates replacement cost minus depreciation.
• Automated Valuation Models (AVMs): AI-driven tools provide instant estimates.

Using valuation models ensures accurate pricing, investment feasibility, and regulatory compliance.