In what I said last session you get the stockholders you deserve you pay small didn’t you get to talk a little like small difference you pay big dividends you get stalkers like big difference you pay obscenely big difference dividend addicts we talked about what happens when you get incredible group of Devon addict sand say look you know I’m gonna cut your difference.
I don’t know how reasonable argument is it’s not gonna fly so nobody wants to do it not mean I have laryngitis meeting six months I plan to have laryngitis I won’t be there then one of the more there’s always this person at every meeting let’s wait maybe something good will happen which were not companies what prices will go up there was a brief period in with Saddam underhandedness into Kuwait when oil prices spiked for a couple of weeks you could see people at BB dancing on the desk no more different.
From normal different prom but in a few weeks later oil prices will back down again to develop promise back finally be people’s deputies somebody had the courage to do the right thing you know why did God evidence where they get the billion dollars every year they went to the bank and borrow the money and when they tried to do that the bank said no you already know most level of oil company we can lend you the money they were forced to cut their balance bikes terms the worst way to cut dividends because you’ve lost control of the process and to show you that the market is not going to treat you kindly this is the headline.
Surprise control for differences that’s the essence of relative valuation so the key step in this process of course is standardizing the price let me set up that process any time you look at multiple you’re going to see a numerator and denominator right and in your numerator you will see one of three numbers you will see the market value of equity market cap you will see the market value of the firm which is market value Property Valuation Perth of equity plus market value of dead or you will see enterprise.
value which is market value of equity plus market value of dead- cash in the numerator you are you should always see some measure of market value in the denominator here your choices you could divide that market value number by a revenue which is the top line in your income statement and you could divide market value of equity by revenues for the market value of the entire business by revenues so that’s your first choice you could use revenues the advantage of using revenues of course it’s always.
A positive number and you’re always going to be able to compute the multiple you could even use drivers of remedies what do I mean by drivers revenues if you’re a cable company your revenues are driven by the number of cable subscribers you have sou could divide your market value by the number of subscribers so the first set of divisors our revenue base divisors you could / some measure of earnings right you can / net income if you’re looking at equity income operating income or some measure of operating income.
if you’re looking at the entire enterprise value so you could some measure of cash flow again that cash flow can either be to equity investors we add back depreciation in that income or even use free cash flow equity or it can be to the entire business we talked about the free cash.
Website called on the house and that one in there if you put in headdress will give you a rough sort of guide as to what they think that’s worth based on comparable and everything like that now the next thing is you need to adjust for market movement so let’s say that the comparable sold three month sago you need to actually just for the time that has passed and for the movement in the market.
so let’s say that prices have risen on average by about two percent during that time you actually need to go and add two percent to the other comparable prices to get areal indication as to what it’s worth today now in order to get those figures Melbourne Property Valuers what you can google is something called the RP Data monthly indices that’s RP data and what they will let you show is the monthly and quarterly.
Moves also show like an annual rate and everything’s well if you’re going back that fire bowed then you know it’s not necessarily going to be the most accurate thing but if you look at a month or quarter that’s probably the best you can do in most cases now it is important to note that just because someone bought something before doesn’t mean that they paid good price so if you’re looking at say two-bedroom apartment and you know you think that you know a value for that might be saved , in the area that you’re looking.
At there might be some you know in that region and there might be a bunch of comparable sales that let’s say in the range in the last quarter but let’s say one transacted just a few weeks ago and transacted much higher let’s say to to just.
Haven’t had a lot of him that was Lancashire going to add it back so it’s going to add back right because this was reduced by that but if you’re starting with a bit even never had that or little from so if you took even that had that you would be double counting because even never have that takes a separate movement this had that since every movement so you want to be careful about being acknowledging where your story points your starting weight is even so the first question I ask yourself this far did.
These do these other line items in my lap times removed from either to help determine if it should be added back so a better example that is other operating activities right this is most likely and add back to someone expense because of the nature of being in an operating activity it could have been an adjustment to other income below market and produce any other not most that’s that’s they did interested in your other the only thing that’s gonna be impacting is something that’s in operations above the evil doll line.
This must have been some expense that reduced even that’s adding back to evens based on that what should we doe should use it it’s important start thinking about that this is complicated will do this in many different ways but i wanted to start realizing how to think about this is kind of the Soviet stuff but just most importantly for your interviews and for your is be able to lay it is out so for that reason I would include the other operating i would not include the extraordinary and this should properly represent cash being produced from the feet from the business started for me but for five years any questions make sure you have it wouldn’t say whatnot we’re going to discount each cash flow based on some discount rate typically the discovery we’re going to use is the weighted.
How we can depict all all next through capita all assets together with some flow Fig cost snow this I think probably many of you already have seen this cry of which comes from the millennium Ecosystem Assessments re already we already discussed that different categories of ecosystem services the provisioning regulating the college should and then how they out the relates.
whether it be a human but being in the in indifferent sin different strengths it said roughs I think millennial make a system assessment Sydney Property Valuations reports really has aha sliced on the a a fantastic patrol told total tool increase all away on this Collect’s the the way it’s thews we octane from our ecosystem next and and to how they out a relate info in my deposit fashion stool of a to all well-being one area of which should in my book in relation to a small-scale fisheries Shave for following that bitch which.
still somewhat the a often up by estimated all or towed it is recognized the the culture is ready all for all free soul sisal at even in this recall the cut sure the video Assisi they always very thin line so soft and son the I think it has become a bit on fortunately that the we we we now toll to see cultural values related that mostly in relation to recreation which is the somewhat the strange a stranger concept because a a high i on the stand the cultural values said emanating primarily from long tradition of the people to use the resources in marry Isaiah preference but also for religious the seven for their.
purposes for the identity terrace and to a find that a at this is of course also the most difficult it’s to rate you especially if the the people whom depend on these resources and to OE who whose life send those around the mare relatively pulpit because then if you owe if you make kind of the a valuation exercise this I love calls its it its fall form from the perspective of people with winsomeness you invariably land of peak values.
This totally not unusual principle of Economics is applied to a number of places in altogether unmarried one one walks of transferring image. It plus bureaucracy the idea of property valuation. for instance, the property or residence in a lively and vital vicinity could be a more price as it has the extra call for than the adding regions. every other crucial principle of economics that runs the belongings valuation is the additive of demand of the one this is most significantly used.
Additionally, it’s miles critical to word if there are any functions that the belongings have to fulfill for diverse humans. while fee accessory compensates for the value of the contribution, the fee of the assets will increase upon its personal. you have to have a primary be a part of up of some primary factors that seasoned to satisfying and modify valuation of your own home. consequently, it can be concluded that the property assessment is an each one critical and a scientific method. From a location point of view, multifamily apartment properties in older, belittle-middle pension neighborhoods often find the cash for the best bang for your greenback.
Plus, your tenant universe is commonly large in those regions. keep away from densely city or totally low pension areas. there’s usually lots of logic whilst the valuation adroit’s selection of the price of any belongings. observe that I’m not a maxim to shop far from each of those troubles at all price. Run the numbers to ascertain feasibility. If you may profit a multifamily condominium assets upon the reasonably-priced, later perhaps you’ll be capable of come taking vicinity contemplating the maintenance for an adding roof, an electric powered remodel, or even mold remediation and but arrive out ahead. it all depends on upon the attain charge, your house valuation end, your stage of revel in, and the strength of your belly.