Not exact matches
Investors are always
doing math, and as company
valuations get increasingly high, the
calculations get tougher.
The
calculations for
doing a rental property
valuation and cash flow analysis are not very complex.
It is a fairly basic worksheet for
doing a rental property
valuation, including
calculation of net operating income, capitalization rate, cash flow, and cash on cash return.
My Dragon
valuation (see notes /
calculations in the Excel file) is close to the current market price, so I didn't comment further on it.
Oh, I left one thing out — all banks would have a
valuation actuary reporting to the board and the regulators who would
do the cash flow testing and the risk - based capital
calculations.
If I
do some rough & ready
calculations to equalize portfolio
valuations at a common 7.2 % rental yield, things get that much more interesting:
I don't know that
valuation, based say on a
calculation of future returns sought, tells me very much about a company's ability to consistently pay dividends with growth.
I
do happen to think the board's in the best position to properly assess LEs & policy
valuations, so I think it's pretty sensible to rely on their assumptions &
calculations as the mid-point of range of outcomes.
The
calculations for
doing a rental property
valuation and cash flow analysis are not very complex.
It is a fairly basic worksheet for
doing a rental property
valuation, including
calculation of net operating income, capitalization rate, cash flow, and cash on cash return.
You may also need to
do calculations in areas not using 100 %
valuations.