1. Determining comparable companies: Many factors need to be considered to determine comparable companies, such as business model, market size, market share, financial status, etc. These factors may vary by industry and region.
2. Determine the adjustment factors: the income adjustment method needs to adjust the financial data of comparable companies to eliminate the differences between them. Adjustment factors include accounting policy, business structure, capital structure and tax policy. , each comparable company needs to be analyzed separately.
3. Determine the weight: To determine the weight, many factors need to be considered, such as the similarity of comparable companies, the number of comparable companies, data quality, etc. Different weight distributions may lead to different valuation results.
4. Consider market conditions: the valuation result of income adjustment method may be affected by market conditions, such as market demand and competition. Therefore, it is necessary to fully analyze and consider the market situation when using the income adjustment method for valuation.
Income method (income reduction method), also known as income reduction method and income reduction method, is one of the commonly used methods in real estate appraisal.
Income method is a method to estimate the normal net income of the appraised object in the future, select an appropriate rate of return or capitalization rate and income multiplier to discount it to the appraisal point and accumulate it, so as to estimate the objective and reasonable price or value of the appraised object, predict the future income of the appraised object, and then convert it into value with the rate of return or capitalization rate and income multiplier, so as to obtain the value of the appraised object.