Let us now consider some types of values ​​in use that are not market-type values. The MCO-2 standard describes valuation bases other than market value, however, not all of them are considered non-market values, but only those for the calculation of which internal (non-market) information and ideas about the value of the value of a particular object are largely used. subject of the market, and not the market as a whole.

The most important representative of value in use is investment value.

Investment cost- this is the value of the property being valued for a specific investor or group of investors for given investment goals.

Investment value is determined based on individual investment requirements. Therefore, the investment cost is calculated based on the income required by the investor and the specific rate of their capitalization.

Unlike market value, which assumes a "typical" buyer and a "typical" investor, investment value is based on the needs and characteristics of the seller and buyer, whose motives are atypical of the market. This is a subjective concept, the calculation of which reflects the fact that this value is formed due to the investor’s own preferences, individual investment requirements and personal motivations that are different from the motivations of a typical buyer or seller taken into account in determining market value, which relates investment value to the values ​​of non-market type.
Investment value is associated with determining the present value of future income streams expected from the operation of property, the nature of which is specified by investment plans. For an investor, important factors include risk, volume and price of financing, future appreciation or depreciation of property, and tax considerations.

The investment value in real estate valuation is determined by the appraiser in the following cases:

When justifying or analyzing investment projects in real estate;
- when determining the feasibility of investments in financing such investment projects;
- if the object of assessment is intended to be used as a contribution to an investment project;
- when making management decisions regarding the further use of the property, etc.

Investment cost, like all costs in use, is calculated using the income approach and, putting the individuality of the valuation parameters at the forefront, does not imply the use of a suspicious (market) approach.

There are a number of reasons why investment value may differ from market value. The main reasons may be differences that are reflected within the framework of the income approach in the amount of cash flow and the size of the discount rate.

They consist of:

In assessing future profitability (required individual norm return on capital); ^
- individual ideas about the degree of risk (not the market average);
- the presence of an atypical tax situation ( tax benefits, special tax status);
- the presence of a preferential lending system that is not alienated from a specific owner (which does not pass to the new owner);
- the possibility of combining property in its specific use with other objects that also belong to or are controlled by the owner (synergic (From the word synergy, not synergetics), effect (The synergistic effect leads to the fact that the sum of the costs of several parts turns out to be less cost a new whole. The value of the synergistic effect is determined by capitalizing the savings that arise for various reasons in various types of mergers (horizontal, vertical, conglomerate, etc.). which can reduce risks).

For a particular investor, it may differ from its market value also as a result of different assessments of prestige, location prospects, etc.

Effective use of a number of individual tools (opportunities) of the owner can reduce investment risks and, accordingly, the discount rate. Thus, the investment value of a property may be numerically higher than the market value due to its wider capabilities, which differ from the capabilities of the average market buyer.

This value may also be higher than the market value due to the specific interest of the investor. Neon may be less than the market value due to the special interest of the seller (to sell cheaper, but to the right person) or in the case of using an object other than NEI, but strictly defined by investment plans.

The term "investment value" should not be confused with the market value of investment property, i.e. property in which investments are made, which are at the stage of investment impact.

Use value- another representative of value in use, when the value of a real estate item is determined as part of the assets of an enterprise when assessing the enterprise as an operating one (for the current owner and for current use, which may not correspond to its most effective use). Typically, such an assessment is performed for financial reporting purposes or the formation of internal management plans. Often, the property being valued can be used only for one specific (production) function, and its use value is assessed by the method of allocation (allocation) from the value of the entire business.

Investing, like any professional activity, has its own terminology. I suggest you understand the concepts that are important for profitable investments.The purpose of investing is to multiply the invested funds. The profitability of a project can be determined based on the investment cost of the property. Let's consider in detail how this can be done.

What is market value

Situations often arise when an inexperienced businessman relies on the market value of an object or even asks a professional to calculate it. In the best case scenario, inaccuracies in the formulation will be revealed in further discussion. But it happens that an investor, purchasing real estate at the specified price, suffers losses.

How does investment value differ from market value? The market rate is the one at which the sale and purchase of an apartment by the parties to the transaction is more likely. And investment value is the personal perception of a property by a specific investor. Let me explain: each entrepreneur invests a certain amount of money, can afford certain risks and plans to achieve a certain income. All these parameters will be different for individual investors. Therefore, the investment value of the same object may differ significantly for different investors.

Investment significance depends entirely on the interests of the investor and may be greater or less than the market value. Essentially it is the future value of the asset. In other words, the cost is also influenced by factors accompanying the transaction: possible risks, payback period, expected expenses (including renovation work and taxes). In order to profitably invest money in real estate, it is important to determine the market value of the premises or plot and compare it with the expected income.

How to Determine Investment Value

It is very difficult to determine the investment rate of real estate on your own. For such calculations, professionals use three methods:

• Expensive. Its essence is that the cost of purchasing the premises should not exceed the cost of purchasing land plot and construction of a similar facility.
• Profitable. Depends on the size of the expected profit. The higher the planned income, the higher the cost may be.
• Comparative. Based on the principle of substitution, i.e. it is necessary to analyze the market value of similar objects.

Specialist investors suggest comparing the obtained figures according to the following scheme:

• expensive - 40%,
• profitable - 30%,
• comparative - 30%.

Using an example, it will look like this: an apartment in St. Petersburg will cost 5 million according to the cost method, 6.2 million according to the income method, and 5.4 million according to the comparative method. We use the formula:

5*0.4 + 6.2*0.3 + 5.4*0.3 = 5.48 million rubles.

It turns out that it makes sense to purchase an object for five and a half million rubles or less.

What is investment attractiveness

The investment value and attractiveness of an asset are closely related. To achieve goals, an investor needs to consider both concepts. They complement each other.

So, before making a decision, you should determine the return on investment period, assess possible threats and calculate the actual profit. It is imperative to take into account the state of the economy of the real estate market, industry trends, the stability of the political situation, as well as personal experience investor to work with similar projects.

We help determine the return on investment on specific objects. Just leave a request

Traditional methods can be used to calculate investment value, but they do not use market data. For example, an investor may apply a rate of return that is not market and specific to that investor.

When using the discounted cash flow method to determine value, the appraiser arrives at an estimate of investment value rather than market value. Thus, the investment value may be higher or lower than the market value depending on the investor's requirements.

Net present value(net present value, net present value, English Net present value, abbreviation accepted in international practice for the analysis of investment projects - NPV or NPV) is the sum of discounted values ​​of the flow of payments reduced to today.

The NPV indicator is the difference between all cash inflows and outflows, reduced to the current moment time (the moment of evaluation of the investment project). It shows the value Money The amount that an investor expects to receive from a project after cash inflows have repaid its initial investment costs and the periodic cash outflows associated with the project. Since cash payments are valued based on their time value and risk, NPV can be interpreted as the value added by the project. It can also be interpreted as the investor's total return. Net present value NPV is calculated using the formula:

where is the discount rate

where -- payment after years () and initial investment IC (Invested Capital) at the rate of

In a generalized version, investments should also be discounted, since in real projects they are not carried out simultaneously (in the zero period), but are extended over several periods. Calculation of NPV is a standard method for assessing the effectiveness of an investment project and shows an assessment of the effect of an investment given to the present moment in time, taking into account the different time value of money. If the NPV is greater than 0, then the investment is economically efficient, and if the NPV is less than 0, then the investment is economically unprofitable (that is, an alternative project, the profitability of which is accepted as the discount rate, requires less investment to obtain a similar income stream).

Using the NPV, you can also evaluate the comparative effectiveness of alternative investments (with the same initial investments, the project with the highest NPV is more profitable). But still for comparative analysis Relative measures are more applicable. In relation to the analysis of investment projects, such an indicator is the internal rate of return.

Unlike the present value indicator, the initial investment is taken into account when calculating net present value. Therefore, the net present value formula differs from the present value formula by the amount of the initial investment.

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• 1. Cost of real estate and its main types
• 2. The essence of investment value
• 3. Purpose of investment value
• 4. Calculation of investment value
• Bibliography

1. Cost of real estate and its main types

In accordance with the Federal Valuation Standards, the following types of value are distinguished, which are combined into groups from the point of view of the objective (in exchange, taking into account both sides of the intended buyer and the intended seller) and subjective (in use, taking into account only one side of the investor/owner) nature of the assessment.

value real estate investment

Sh Market price- the most probable price at which a given object can be alienated on the open market in a competitive environment, when the parties to the transaction have all the necessary information, and the value of the transaction is not affected by any extraordinary circumstances.

Sh Investment cost- the value of the valuation object, determined on the basis of its profitability for a specific person for given investment purposes.

Sh Liquidation value- the cost of the valuation object in the event that the valuation object must be alienated in a period shorter than the usual period of exposure of similar objects.

Sh Cadastral value- the value of the valuation object, determined by mass valuation methods in accordance with the provisions of regulatory legal acts on cadastral valuation. (Federal valuation standard “Purpose of valuation and types of value (FSO No. 2)”, approved by order of the Ministry economic development and trade of the Russian Federation dated July 20, 2007 No. 255).

We'll look at investment value in more detail in the next chapter.

2. The essence of investment value

In accordance with international standards of assessment under investment value understand the value of the property complex of an asset, which is of interest to a specific investor who has certain goals (criteria) in relation to the investment object. It should not be equated with the market value of the investment property.

Investment cost- this is the reasonable value of the enterprise for a specific or prospective owner. This indicator takes into account the increase in profit from the use of the company’s know-how, plans for its reorganization, and the like. Investment value reflects how much an asset or a company as a whole costs a specific owner or may cost the owner in the future. This type of value represents the knowledge, capabilities, expectations of the current or future owner regarding risks, the most likely return and many other factors. The feasibility of assessing investment value is associated with making an investment decision, that is, comparing the market value of the object being valued and its investment value.

Market value and investment value are different in nature, but may coincide under certain circumstances. Independent assessment market value usually occurs without reference to the value of investment value, but the assessment of investment value is almost always accompanied by an assessment of market value in order to ensure the ability to make the right investment decision. The assessment of market value does not take into account the existence of any specific sellers or buyers in the market; the appraiser proceeds from the most typical proposed transaction between a seller and a buyer who have the qualities and motivation that are typical for the market of the objects being valued. IN in this case, it is very important to be able to distinguish between typical market conditions and the individual specific requirements of a particular investor, such as synergies with other ongoing operations and differences in the following components:

* assessment of the value of future cash flows;

* determination of the degree of risk and its factors;

* required rate of return;

* degree of predictability;

* level of financial costs;

* tax status.

Thus, if the result of assessing the investment value exceeds the market value of the object being assessed, then the investment attractiveness of the asset in question is high, and vice versa, if the investment value of the business being valued is below the market value, then the potential investor will most likely refuse to finance this investment project. That is, the main task facing a specialist assessing the market value of a business is the implementation of an investment policy aimed at the continuous growth of investment value in order to ensure competitive advantages.

As a rule, the purpose of the valuation is to determine the value necessary for the client to make a management decision. In carrying out appraisal work various parties may be interested: from government agencies before individuals; Control and audit bodies, management structures, banks, insurance companies and other organizations may be interested in business valuation.

Factors of investment value determine the methods of its assessment, and the main criterion for determining the method is the ability to assess the investment value of the enterprise, taking into account the most important risks. Income approach takes these factors into account to the greatest extent and is suitable for assessing investment value. The usefulness of an organization to an investor or manager is determined by the potential for return on invested capital, and this understanding of the market value of a business is reflected by investment value.

3. Purpose of investment value

Investment value of the valuation object- the value of the valuation object, determined on the basis of its profitability for a specific person for given investment purposes. Investment cost calculation is based on subjective assessment discounted costs and investor income expected from the use of this property in a promising investment project. The investment value of real estate for a particular investor differs from its market value as a result of different estimates of the required rate of return, prestige, location prospects, and the possibility of obtaining a spiritual effect. It is calculated when developing vacant land plots, expanding and reconstructing real estate, making real estate as a contribution to the authorized capital of enterprises and in other cases.

When determining the investment value of the valuation object, the value for a specific person or group of persons is determined for the investment purposes of using the valuation object established by this person (persons). When determining the investment value, in contrast to determining the market value, it is not necessary to take into account the possibility of alienation at the investment value on the open market.

Investment value is determined by the appraiser in the following cases:

b if a transaction is expected to be completed with the object of evaluation in the presence of a single counterparty who puts forward conditions that differ from typical market ones;

b if the object of assessment is intended to be used as a share contribution to an investment project with the monetary equivalent of this share being contributed to the authorized capital of the product of the specified investment project;

b when justifying or analyzing investment projects;

b when implementing measures to reorganize the enterprise:

With a change in the status of the valuation object or with its allocation in kind

With its removal from the divisions or assets of the enterprise or with its inclusion in the divisions or assets of the enterprise;

b if it is necessary to sell an object within a period of time shorter than the average market exposure period (including during liquidation of the enterprise).

4. Calculation of investment value

Traditional methods can be used to calculate investment value, but they do not use market data. For example, an investor may apply a rate of return that is not market and specific to that investor.

When using the discounted cash flow method to determine value, the appraiser arrives at an estimate of investment value rather than market value. Thus, the investment value may be higher or lower than the market value depending on the investor's requirements.

Net present value(net present value, net present value, English Net present value, abbreviation accepted in international practice for the analysis of investment projects - NPV or NPV) is the sum of discounted values ​​of the flow of payments reduced to today.

The NPV indicator represents the difference between all cash inflows and outflows brought to the current point in time (the moment of evaluation of the investment project). It shows the amount of cash an investor expects to receive from a project after cash inflows have paid off its initial investment costs and the periodic cash outflows associated with the project. Since cash payments are valued based on their time value and risk, NPV can be interpreted as the value added by the project. It can also be interpreted as the investor's total return. Net present value NPV is calculated using the formula:

where is the discount rate

where -- payment after years () and initial investment IC (Invested Capital) at the rate of

In a generalized version, investments should also be discounted, since in real projects they are not carried out simultaneously (in the zero period), but are extended over several periods. Calculation of NPV is a standard method for assessing the effectiveness of an investment project and shows an assessment of the effect of an investment given to the present moment in time, taking into account the different time value of money. If the NPV is greater than 0, then the investment is economically efficient, and if the NPV is less than 0, then the investment is economically unprofitable (that is, an alternative project, the profitability of which is accepted as the discount rate, requires less investment to obtain a similar income stream).

Using the NPV, you can also evaluate the comparative effectiveness of alternative investments (with the same initial investments, the project with the highest NPV is more profitable). But still, for comparative analysis, relative indicators are more applicable. In relation to the analysis of investment projects, such an indicator is the internal rate of return.

Unlike the present value indicator, the initial investment is taken into account when calculating net present value. Therefore, the net present value formula differs from the present value formula by the amount of the initial investment

Bibliography

1. the federal law“On valuation activities in Russian Federation» N 135-FZ dated July 29, 1998 (as amended on July 21, 2014)

2. Federal valuation standard “Purpose of valuation and types of value (FSO No. 2)”, approved by Order of the Ministry of Economic Development of Russia N 255 of July 20, 2007.

3. International assessment standards. Book 1, G.I. Mikerin (leader), M.I. Neduzhiy, N.V. Pavlov, N.N. Yashina. - M.: JSC “Printing house “NEWS”, 2011. - 264 p. - ISBN 5-88149-061-4 (general), ISBN 5-88149-056-8 (kN. 1).

4. S.V. Valdaytsev. Business valuation and enterprise value management: Textbook for universities. - M.: UNITY-DANA, 2009. - 720 p. - ISBN 5-238-00251-3.

5. A.V. Postyushkov. Evaluation management: tutorial. - M.: FAIR PRESS, 2010. - 272 p. - ISBN 5-8183-0685-2.

6. N.B. Rudyk. Capital structure of corporations: theory and practice. - M.: Delo, 2009. - 272 p. - ISBN 5-7749-0377-Х.

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