Asset intelligence
Market-based approach
The most important factors when making an investment decision are the value and the expected revenues of a property. Forest property valuations can be conducted in many ways, some methods being more accurate than others. FIF strongly believes in the market-based valuation methods, especially in the sales comparison approach (SCA) as the primary valuation method for forest properties.
Valuation of forest assets
Two main methods tend to be used in the valuation of forestland properties: the market approach and the income approach. In the market approach, past transactions of similar properties are used to indicate asset value, while the income approach takes future cash flows as the basis of today’s value. As both methods have their advantages and disadvantages, using both approaches simultaneously gives a market-based rate of return while demonstrating the true power of asset intelligence.
We offer a full range of services for all kinds of forestland property valuations, from efficient field inventory to actual appraisal and quality control. Our expertise focuses primarily on the sales comparison approach, but we are also happy to take discounted cash flow (DCF) calculations as the valuation method. Our valuation services have been used successfully for tens of thousands of forestland hectares.