Everything has an intrinsic value. The difficulty, however, is in finding a consensus on what that thing is worth. Everyone will have a different opinion. That is why being able to determine a fair and defensible value is extremely important.
But it must be a fair valuation based on educated assumptions built around proven methodologies. But what are those assumptions? And can understanding those assumptions help businesses make better financial decisions?
Understanding what an asset is worth, and what drives that value, is essential when management and stakeholders need to make informed, and effective, business and investment decisions. This requires decision makers to trust the valuer’s opinion.
We captured the views of 45 valuation practitioners from a variety of core valuation organisations across Australia, to provide key insight into the thinking behind the valuers’ opinions.