What’s the market value of your investment?

Some investors make real estate investments to buy offices, flats, and shops. Things are a relatively straightforward in these cases: The investor knows the investment amount and can calculate the return on investment according to annual income.

Some investors invest in instruments such as foreign currency, stocks, but there are no clear rate for their earnings. Within the scope of financial investment, approximate returns can be estimated in interest and bond investments.

The initial investment amount/cost amount is known in capital investments, such as investments for factories, hotels, commercial and service investments. Once it has been put into operation, the value of the investment begins to differ from the initial and cost value. It is not possible to track this difference through the book value. The operation of VALUATION is required.

1. Land allocation was made from an Organized Industrial Zone (OIZ).
2. Factory construction has started.
3. Machine park (machinery) has been completed.
4. Finally, the factory has started to operate

Value of Investment = Land + Factory building + machinery park + working capital

After the facility starts operating, it will draw customers. It will generate revenue and earnings from sales. Therefore, such values expressed as business value, enterprise value, firm value, etc; are commercial and economic values, comprising tangible and intangible asset values

Let’s use company value as a concept…

Who can increase company value?

Can an expert or consultant increase the company value? No.

Factors affecting company value are

1. Company management and practices / activities,
2. Sector,
3. Economic conditions.

Although Company valuation reportcome to the forefront in the sale of a firm and in share sales, firm valuation studies that have been carried out over the years are important for measuring the firm performance over the years. It enables an anaylisis of how each internal and external factor affect the company. Therefore, valuation studies can form the bases of strategic planning and goals.

Also, the enterprise, which cannot explain or express itself with the values recorded in the financial statements, can be rendered articulate and comprehensible in the Firm valuation report.