Technology Value

Valuation and Negotiation of Technology Code: 212032

Stage 3 Technology value

Name Jhon Edison Rojas Muñoz

Code: 212032_44

Topic: Market approach method

3163606239

March 2024

jermun@unadvirtual.edu.co

Market approach method

The market approach is a method of determining the value of an asset based on the sales price of similar assets. It is one of the three most popular valuation methods, along with the cost approach and discounted cash flow (DCF) analysis.

Market approach method

How does it work

seeks to answer the question "what is the fair market value of this asset?" To answer this question, the appraiser should examine recent transactions involving similar assets. Since these assets are unlikely to be identical to the one being valued, several adjustments will need to be made.

Market approach method

Example

You are going to buy a new apartment. You find an ad for an apartment in your favorite neighborhood offered for $200,000. The apartment is in good structural condition but needs some small renovation work. Although he likes the apartment, he thinks the asking price is too high. Since the apartment has been for sale for over a month, you begin to suspect that if you make a fair offer, the seller might accept it even if it is less than the asking price. Start determining the fair market value of the apartment by looking for examples of similar apartments in the same neighborhood that sold in the past year and make the following table

Market approach method

How can companies create value from their innovation

Companies must focus their efforts on products and services that are more sustainable and that maintain a competitive price in the market. Impacting the market with innovative and recycled products, contributing to the environment and social responsibility