Value and worth: scenario analysis

This paper sets out to look at “calculation of worth” as it relates to valuations.

A number of pricing models and valuation methods are analysed. Forecasting is also considered.

It is possible to adapt the discounted cash flow (DCF) method to incorporate subjective predicted growth rates. In the case of a rack‐rented freehold, the DCF method produces the same value as the traditional method.

This paper looks at “testing the assumptions”.