Model (Valuation Model)

A valuation model is a systematic approach used to estimate the worth of an asset, such as a company or property. It analyzes various factors like cash flow, market conditions, and comparable sales to provide a monetary value. Different models cater to different types of assets; for example, Discounted Cash Flow (DCF) focuses on future cash inflows, while market comparables look at similar assets' sale prices. The goal is to inform investors or stakeholders, helping them make informed decisions about buying, selling, or owning an asset.