Estimates Of Market Value Research Articles

Enhancing Market Value Estimation for Privately Held Companies: Differentiated Multipliers in the Czech Brewing Industry

Enhancing Market Value Estimation for Privately Held Companies: Differentiated Multipliers in the Czech Brewing Industry

Expanding the coverage and accuracy of parcel-level land value estimates.

Planning for cost-effective conservation requires reliable estimates of land costs, spatially-differentiated at high resolution. Nolte (2020) provides a county-by-county, parcel-level estimation approach that dramatically improves estimates of fair market value for undeveloped land across the contiguous Unites States. Much undeveloped land of conservation interest is under threat of conversion to agricultural use or is already agricultural. This paper demonstrates the value of accounting for additional variables that affect agricultural productivity and demand for undeveloped land, as well as the benefit of modeling at scales corresponding to regional agricultural markets. We find that countywide median home value, climatic variables, and several parcel-level soil type variables contribute substantially to predictive power. Enlarging the set of predictors and the geographical scale of modeling improves accuracy by approximately 15 percent and, relative to a more restricted modeling benchmark adapted from Nolte (2020), extends coverage into 376 counties occupying 1.35 million km2. To assess the practical benefits of our modeling approach, we simulate the protection of 30 percent of US lands via government purchasing, modeled after the Biden administration's "30x30" initiative. Using our proposed modeling strategy, the purchasing agency saves approximately $15 million per year, or 4 percent of the USDA's annual land easement budget.

Assessing the accuracy of individual property values estimated by automated valuation models

PurposeThe intent of this paper is to identify uncertainty surrounding automated valuation models (AVMs) valuations and the criteria by which a valuer could judge the accuracy of an AVM estimate of value when being assisted by such AVM as a valuation tool.Design/methodology/approachEuropean law and European Valuation Standards allow valuers to use AVMs as one tool among others in reaching an estimation of Market Value, but only insofar as the valuer is able to satisfy him/herself and the client of the relevance of the AVM report, its inputs and outputs. To enable this, it thus becomes essential that AVMs be more transparent and their accuracy verified.FindingsThis paper recommends minimum reporting requirements thereby enabling an assessment of AVM valuations. At the outset, a distinction needs to be made between two groups of AVM users: banks and valuers. Banks will require considerably more information, including details of the types of models employed and “Bulk” accuracy test results.Practical implicationsThis paper addresses the minimum information needed by valuers in order to gauge the usefulness and accuracy of the AVMs they propose to use as one of their valuation tools.Originality/valueThis paper provides guidance on minimum information requirements for AVMs. Indeed, it may be that the AVM vendors' industry will recognise that providing more transparency in their reports along the lines suggested would facilitate a wider and more supportive acceptance of AVMs.

Real Estate Pictures: The Role of Furniture Preferences in Subjective Valuation

In real estate pictures, home staging, which is the temporary display of high-end furniture, is meant to positively impact the sales process for the involved parties: the broker, the seller and also the buyer. In this article we focus on the impact of home staging on the price aspect in this process. In our experimental design to isolate the effect of furniture on valuation, we show pictures with furniture to one group and those without furniture to the other group. The main task for both groups of students is to estimate the market value of an empty apartment. Additionally, they must state their preferences for furniture in an apartment. On aggregate, we do not find significant differences in market value estimates between the two conditions, which is in line with the recent literature. At subsets based on individually indicated preferences for furniture, we find two main differences: those in the group with lower indicated preferences for furniture do not adjust their value estimates in a second estimation task, where the presence of furniture is changed, while those in the second group adjust their value estimates in the second estimate, where the adjustments are significant with a magnitude of approximately 11% based on their preferred condition. We conclude that if a client indicates a high preference for furniture, then the presented furniture affects his or her perception of the property. Additionally, we monitor the dwell time, which is significantly longer for the furnished condition and is an indication of information reception.

The evaluation of marketing competitiveness of B2B E-commerce enterprises based on optimized deep learning networks

In the context of e-commerce trade between enterprises, there are problems such as price wars, false advertising, and unreasonable operations aimed at seizing market share. However, traditional estimation methods cannot provide a reasonable evaluation of the marketing competitiveness of e-commerce enterprises from an overall perspective. To help enterprises better clarify their own position and quantify their marketing competitiveness, a competitiveness evaluation model based on optimized deep learning networks is proposed. By combining subjective and objective evaluation methods, the indicators that affect the marketing competitiveness of enterprises are assigned to obtain the final competitiveness value. The research outcomes expressed that the max absolute error of the model constructed by the research institute was 0.0006, the max relative error was 0.0045, and the model accuracy was 99.85%. In the secondary indicator experiment of marketing competition, the model determined that the turnover rate of fixed assets had the greatest impact, with a weight value of 0.1263. Nine companies were randomly selected for market value estimation, and the average relative error of the model was 14.90%, which was lower than the mean relative error of the relative valuation, cash flow and absolute valuation methods, with numerical differences of 8.03%, 2.94%, and 0.12%, respectively. The research findings illustrated that the model constructed by the research institute had good performance and certain reference values for evaluating the marketing competitiveness of e-commerce enterprises.

Managing company value in times of COVID-19 turbulences: Winners and losers in Central Europe

This research adds to the growing literature on impact of the COVID-19 global turmoil on corporate financial performance. Changes in company value are continuous market processes. However, the pandemic has triggered many shock changes, including unprecedented turbulences in most business mechanisms. Our research provides empirical assessment of the market process of value migration across industries in Central Europe in several dimensions. The estimates of market value added and synthetic measure of value migration show substantial differences between industries. The study provides a classification of business designs by development stages and details significant changes in operating performance in response to the health and economic turmoil. Our findings on differences in industries’ vulnerability to shock changes have important implications for managers, shareholders, lenders, and other company stakeholders.

Estimation of Market Values of Football Players through Artificial Neural Network: A Model Study from the Turkish Super League

ABSTRACT Artificial intelligence (AI) has been widely affecting our lives in many ways for the last ten years. Potential applications of AI are currently being used in many sectors. However, the usage of AI has been very limited in sports science compared to the other sectors. In this study, we developed an artificial neural network model to estimate the market values of the players in the Turkish Super Football League. While the market value was selected as an output, the input values were: minutes played; goals scored; xG: assists; xA; defensive duels won %; tackle success %; shots on target %; Short-middle pass accuracy %; long pass accuracy %; and accuracy of passes to penalty area. After creating a neural network based on the input-output values with high training, validation and testing statistical values, input values were computed with the neural network created and then the output values were estimated. In conclusion, an artificial neural network is becoming one of the important modeling methods in all areas of life. Although the application of artificial neural networks is very limited in sports science, it is one of the suitable science disciplines where there is a lot of statistical data. The methodology proposed in this paper can also be used for talent selection in football. Moreover, it may help stop criticism by TV sports programmes and newspapers because market value estimation is based on fair performance parameters. Further studies are strongly recommended, not only for football but also for other sports disciplines.

RELIABILITY OF DEPRECIATED REPLACEMENT COST TO OTHER METHODS IN VALUATION OF RELIGIOUS PROPERTY, A CASE STUDY OF ANSARUDEEN MOSQUE, ILORIN METROPOLIS

Mosque valuation is a highly specialized method of real estate appraisal that necessitates not only a detailed understanding of the many concepts and procedures of general appraising, but also an in-depth understanding and expertise in order to arrive at an accurate estimate of market value. Using cross-sectional statistics, this study investigates the reliability of depreciated replacement cost in valuing specialized property. For the purpose of gathering data for this analysis, two separate sets of questionnaires were used. The first questionnaires were distributed to a licensed estate surveying firm in Ilorin, Kwara State. The Mosque Committee, on the other hand, received the other collection of questionnaires. The questionnaire's questions delved into the biographical details of the Registered Estate Surveyors. Descriptive statistics were used to interpret the data. Depreciated Replacement Cost is the most accurate method of valuation of Specialized Property, the Study revealed that, due to the specific nature of Specialized Property, such as the lack of rental evidence, the infrequency with which it is sold or rented, and the fact that it is not commonly used for other purposes. To save valuers a lot of tears, guidelines on unit cost of construction for buildings and depreciation should be made available.

High-resolution land value maps reveal underestimation of conservation costs in the United States

The justification and targeting of conservation policy rests on reliable measures of public and private benefits from competing land uses. Advances in Earth system observation and modeling permit the mapping of public ecosystem services at unprecedented scales and resolutions, prompting new proposals for land protection policies and priorities. Data on private benefits from land use are not available at similar scales and resolutions, resulting in a data mismatch with unknown consequences. Here I show that private benefits from land can be quantified at large scales and high resolutions, and that doing so can have important implications for conservation policy models. I developed high-resolution estimates of fair market value of private lands in the contiguous United States by training tree-based ensemble models on 6 million land sales. The resulting estimates predict conservation cost with up to 8.5 times greater accuracy than earlier proxies. Studies using coarser cost proxies underestimate conservation costs, especially at the expensive tail of the distribution. This has led to underestimations of policy budgets by factors of up to 37.5 in recent work. More accurate cost accounting will help policy makers acknowledge the full magnitude of contemporary conservation challenges and can help improve the targeting of public ecosystem service investments.

Logit model application for valuating intangible benefits from the afforested areas

PurposeThe estimation of market value of intangible benefits of afforestation has always been a challenging task, and the contingent valuation method is a popular method used in environmental assessment. The NTPC set up a coal-based power plant in Korba, India and planted 1.6 million trees on 19% of the project area.Design/methodology/approachThe individual's mean and median willingness to pay (WTP) for four intangible benefits, namely, pollution control (PC), improvement in underground water level (IUGWL), soil conservation and remediation (SCR) in addition to total WTP from the afforestation program of NTPC were estimated using a customized procedure for logit model based upon respondent's age, education, occupation, income and bid amount asked to pay. Stratified multistage random sampling has been used to select the respondents.FindingsThe procedure increases the number of respondents who are willing to pay as compared to conventional CVM. The finding of the study shows that the highest WTP was observed for PC (Rs. 462.84 per month per household) followed by SCR and IUGWL, whereas for total WTP it was Rs. 972.60.Originality/valueThe proposed customized procedure and the results thereof would be useful in improving the WTP estimates for other similar studies in order to conserve the environment.

Following the Market? Hedonic Farmland Valuation Using Sales Prices versus Self-reported Values

Many farmland valuation studies rely on survey estimates to form the dependent variable in a first-stage hedonic model. This study, based in New York State, provides a microscale comparison of transaction prices and producers’ market value estimates from the U.S. Department of Agriculture’s June Area Survey. Although we find similar weighted value distributions, regression results identify differences in marginal effect estimates and illustrate how market thinness plays a role in the comparability of observed transaction prices and self-reported values. The findings have implications for future hedonic studies, including insights into behavioral differences concerning how farmers and market participants perceive the value of farmland.

Основні напрями впровадження міжнародних стандартів оцінки ринкової вартості майна, майнових прав та активів комерційних банків в Україні

In the article, on the basis of generalization of the international experience of valuation of the market value of property, property rights and assets of commercial banks, the proposals for harmonization of national valuation standards with the international ones are formed. The structural features of international and European standards of assessment are considered. It is emphasized that the European Valuation Standards (EVS 2016) contain elements of the European legislative framework that are related to the financial valuation of property, which allows for various types of financial valuation of tangible and intangible assets. It is found that the difference between these standards is their large structural detail and focus on examining the specific specifics of specific areas of evaluation work. The peculiarities of application as a base of valuation of the market value in the valuation of assets of commercial banks containing property rights are considered. The introduction of the Technical Document of the Automated Assessment Model to substantiate the practical implementation of the Unified Database of Assessment Reports of the State Automated Information and Telecommunication System provided by the legislation of Ukraine is substantiated; of the Technical Document of fair value determination according to the International Financial Reporting Standards is substantiated. Researched estimation of the market value of mortgage property in the case of mortgage lending by banks, which require improvement of professional national standards, are considered. The extension of existing national property and property valuation standards is justified by an approach to value appraisal using optional pricing models. The peculiarities of application of Black-Scholes dynamic model for estimation of market value of a commercial bank are considered. Because, in this sector, assets and liabilities are close in value because of the peculiarities of doing business, mainly at the expense of attracted funds.

Valuation of Large Variable Annuity Portfolios with Rank Order Kriging

Metamodels, which simplify the simulation models used in the valuation of large variable annuity portfolios, have recently increased in popularity. The ordinary kriging and the GB2 (generalized beta of the second kind) regression models are examples of metamodels used to predict fair market values of variable annuity guarantees. It is well known that the distribution of fair market values is highly skewed. Ordinary kriging does not fit skewed data well but depends on only a few parameters that can be estimated straightforwardly. GB2 regression can handle skewed data but parameter estimation can be quite challenging. In this article, we explore the rank order kriging method, which can handle highly skewed data and depends only on a single parameter, for the valuation of large variable annuity portfolios. Our numerical results demonstrate that the rank order kriging method performs remarkably well in terms of fitting the skewed distribution and producing accurate estimates of fair market values at the portfolio level.

The essence and peculiarities of conducting forensic evaluation expertise

Purpose. The aim of the article is determination of peculiarities of forensic evaluation expertise and its classification on the basis of the analysis of existing scientific views and provisions of the current legislation of Ukraine. Methodology of research. The theoretical and methodological basis of the study are the fundamental provisions of forensic evaluation expertise, as well as scientific works of domestic scientists, devoted to the problems of classification and conduct of forensic evaluation expertise in Ukraine. Modern research methods are used to achieve this goal: systematic analysis – in the study of theoretical and methodological foundations of forensic evaluation expertise; abstract and logical – to clarify the essence of the basic concepts, definitions and categories of forensic evaluation expertise. We also used such research methods as a monographic and graphical method of presenting information. Findings. It is determined that in modern conditions forensic expertise is a complex multifaceted activity, which is carried out in expert institutions by relevant highly qualified specialists, which performs multidimensional activity having specific characteristics related to organizational, cognitive, criminal procedural and other parties. It has been established that forensic activities perform an information-providing function to form the conditions for conducting a qualified, objective forensic expertise using scientific methods of cognition. The purpose of the examination is to provide answers to the questions that require special knowledge. The subject matter of the examination is the disputed subject, the subject matter – facts and data related to the question under investigation and which require the expert's judgment. It is determined that the expert's study is formalized by expert opinion, which is evidence of the presence or absence of facts and other data that have been the subject of dispute. The analysis of the legislative framework for the regulation of the national judicial evaluation expertise has been carried out. Originality. The characteristic features of forensic evaluation expertise that determine their authenticity are highlighted in the article, in particular: the legal concept of examination; “expertise” as an extracurricular check; “expertise” as a procedural inquiry and “independent expertise” as a non-procedural study. The classification and methods used in forensic evaluation are substantiated and determined. Various approaches to the classification of expertise in domestic practice have been generalized and highlighted. Practical value. The obtained proposals can be used to improve the current system of forensic evaluation development, which determine the need for organizational, procedural and legal solutions to a number of problematic situations. Key words: evaluation; appraisal activity; expert; expertise; economic expertise; commodity expertise; market value estimation; forensics expertise; forensic expert appraisal.

Can ship recycling be a sustainable activity practiced in Brazil?

South Asian countries are the main players in the recycling industry, there are problems linked to contamination, occupational health, and procedures that are not sustainable. Due to recent regulations in the recycling industry, shipyards outside Asia with sustainable practices can be authorized by the European Union to participate in this market. Considering the fact that, Brazilian shipyards have not been contracting for new ship orders, their production capacity could be used to ship recycling. Then, the novelty of this paper's contribution is that it is the first study to examine the legal, technical, and economic aspects of ship recycling for Brazilian shipyards. The research strategy adopted was based data collected from ships recycled in south Asia in 2016 and the Brazilian fleet with the potential to be recycled over the next 25 years. Semi-structured interviews with maritime sector professionals, as well as shipyard stakeholders and ship owners, were conducted to identify the perception of this activity in Brazil. A statistical descriptive analysis was conducted and an estimate of global market value was determined considering the ships recycled. The findings indicate that, in 2016, India, Bangladesh, Pakistan, Turkey, and China were responsible for 96.64% of the global market. In the same year, approximately 27 ships were recycled out of South Asia showing a change in the predominant countries in ship recycling. The potential Brazilian fleet to be recycled over the next 25 years represents approximately 340 ships with an estimated market value of US $587 million. Brazilian shipyards are an environmentally and technically qualified industry, with an idle capacity of ±900,000 Tons per year. However, local and international stakeholders suggest that Brazilian shipyards need to acquire expertise and expand feasibility studies to develop ship recycling locally.

Influence of crowdsourcing, popularity and previous year statistics in market value estimation of football players

Every week, millions of dollars are pumped into the sport of football (Association Football). The transfer value of football players proliferates each year and transfer records get shattered every other transfer window. Players are signed with a certain transfer fee which is determined during the transfer of that player. However, it is noteworthy to have a metric or economic valuation signifying the price tag on a player throughout the season rather than only during the transfer. This paper introduces the contribution of consistency, popularity, crowd estimation and performance parameters on top of the factors used in previous studies in predicting market value of the player using machine learning algorithms. The results show that the predicting accuracy is enhanced when these parameters are considered for evaluating market value of the football player.

Does Selection Bias Matter in Football Players’ Valuation? A Crowdsourced Valuation Approach on Players’ Athletic Characteristics

ABSTRACTThe paper analyzes the influence of football players’ athletic characteristics on their corresponding market values. To measure players’ market values, we use estimates of market values by experts from a crowdsourced, international frequently cited sport-database (Transfermarkt.de). Therefore, market values reflect the expectations of stakeholders in the football industry involved in transfers and give implications for future transfer prices. We use a unique data-set including 915 players of the First and Second German Bundesliga and analyze by using ordinary least squares (OLS) regressions the influence of players’ minutes played, days injured, amount of goals and assists, yellow cards, dismissals, and titles won on their market values. Players’ minutes played, goals scored, assists scored, and titles won have a significant positive influence on their market values. Players who are more often injured have higher market values than players who are less often injured.

Beyond crowd judgments: Data-driven estimation of market value in association football

Association football is a popular sport, but it is also a big business. From a managerial perspective, the most important decisions that team managers make concern player transfers, so issues related to player valuation, especially the determination of transfer fees and market values, are of major concern. Market values can be understood as estimates of transfer fees—that is, prices that could be paid for a player on the football market—so they play an important role in transfer negotiations. These values have traditionally been estimated by football experts, but crowdsourcing has emerged as an increasingly popular approach to estimating market value. While researchers have found high correlations between crowdsourced market values and actual transfer fees, the process behind crowd judgments is not transparent, crowd estimates are not replicable, and they are updated infrequently because they require the participation of many users. Data analytics may thus provide a sound alternative or a complementary approach to crowd-based estimations of market value. Based on a unique data set that is comprised of 4217 players from the top five European leagues and a period of six playing seasons, we estimate players’ market values using multilevel regression analysis. The regression results suggest that data-driven estimates of market value can overcome several of the crowd's practical limitations while producing comparably accurate numbers. Our results have important implications for football managers and scouts, as data analytics facilitates precise, objective, and reliable estimates of market value that can be updated at any time.

Technical Assessment of Constructions in Real Estate Appraisal

One of the modern society priorities is the tendency towards sustainable social and economic development. Sustainable development is possible through the preservation and efficient use of the values created by our ancestors and the ability to meet current needs so as not to endanger the ability of future generations to meet their own needs. Real estate appraisal activity evaluates the changes in property value over time. Physical or legal actions on the property are justified only if the future value is not affected.Theory and practice of appraisal activity quantifies three approaches to value:The Sales Comparison Approach – value is examined in terms of current market preferences;The Income Approach – determine the income the property is expected to generate over time as a result of the most probable use;The Cost Approach – value is perceived in terms of replacement cost of real estate with one with comparable utility.Technical assessment of constructions is applied as a rule mainly in the cost approach, and has a major impact on the estimate of market value. The role of technical assessment is reduced, even ignored and not taken into account in other approaches.The present research examined the role of technical assessment of constructions in the process of real estate appraisal and the impact of inspection on the real estate value.

Double real estate evaluation

In the traditional methodology the two main approaches to estimate the market value are the synthetic procedure and the analytic procedure, that correspond respectively to the market comparison approach and to the method for direct capitalization, according to the valuation standards. In professional practice, the two procedures are often used to confirm the final result of he appraisal or to verify the results of one with the other. However the main purpose of using the two procedures independently in the estimate of the market value is to incorporate more data and market information and to work with a broader range of methodological tools.