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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.

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