EDUCATION BRIEFING The discounted cash flow model for property valuations: quarterly cash flows

摘要

Purpose - There are three approaches to valuation: cost, market and income. As a subset to the income approach, the investment method looks at the pricing of assets that produce income over an investment holding period. The discounted cash flow (DCF) technique or model can be developed to look at the cash flows on a quarterly basis to reflect the actual receipt of the cash flows. The aim of this paper is to give an overview of the DCF quarterly model. Design/methodology/approach - This education briefing is an overview of the DCF quarterly model. Findings - The DCF quarterly model can be seen to produce estimates of market value. Practical implications - As the use of DCF is developed and expanded, it is useful to be able to model the cash flows appropriately. Originality/value - This is a review of existing models.