What is Replacement as New (RAN) Valuation?

Replacement as New Asset valuation is the process of determining the fair market or present value of assets, using book values, absolute valuation models like discounted cash flow analysis, option pricing models or comparables. Such assets include investments in marketable securities such as stocks, bonds and options; tangible assets like buildings and equipment; or intangible assets such as brands, patents and trademarks.

Asset valuation plays a key role in finance and often consists of both subjective and objective measurements. The value of a company’s fixed assets – which are also known as capital assets or property plant and equipment – are straightforward to value, based on their book values and replacement costs. However, there’s no number on the financial statements that tell investors exactly how much a company’s brand and intellectual property are worth. Companies can overvalue goodwill in an acquisition as the valuation of intangible assets is subjective and can be difficult to measure.

We are Independent Asset Valuation Provider

We have experience preparing valuations from a technical perspective using CAF-CAPEX cost data, to reflect the unique configuration of the facility. Asset valuation is the process of determining the fair market value of an asset.
We apply different methods for Asset valuation, that often consists of apply benchmarked values on objective measurements obtained from Asset Databooks values.
The Absolute value models value assets is based only on the characteristics of that asset using relative valuation ratios, such as cost curves and ratios, that help determining asset valuation by comparing similar assets.

 

 

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