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Estate valuation | Free template

Estate valuation is a free template to make a valuation of an apartment building and calculate an estate value. An estate value is based on an apartment buildings future ability to generate earnings and cash flows.

This model for estate valuation is based on estimates and projections of future performance in earnings. The projection period in the model include ten years in the future and the residual value is based on the earning in year 10 divided by the real discount rate. This valuation method means that each year over the forecast period are discounted with a nominal discount rate and that the residual value at year 10 are discounted with a real discount rate. The sum of all discounted earnings and the discounted residual value plus any excess liquidity gives the corporate value. With excess liquidity means the capital that can be distributed to the owners directly at the valuation day provided that the company's earnings generation capacity not is affected.

With discounting means that a earning that is generated later in time gives a lower value today compared with a result that is generated today.

The workbook includes four (4) worksheets and cells with green color are the input boxes, cells with white color are output boxes and contain formulas. In the worksheet valuation you get the estate value through the discounting of earnings.

In order to estimate expenses in the future you can look at historical accounts or on competitors' income statements and calculate the proportion of expense to income. These percentages can then be used in estimation of expenses in the future depending on the size of income.

You can use this template for estate valuation when you are to buy or sell an apartment building.
Updated: 01/01/2015 | Created by

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Tags: corporate finance dcf excel spreadsheet