Comparative approach to real estate valuation. Yu. Galyamov Candidate of Economic Sciences, Professor, Head of Department. “Economic theory 3.1 58 how the gross rent multiplier is determined

In mass valuation, like individual valuation, three methods are used, based on three different approaches to real estate valuation: the sales comparison method, the replacement cost method, and the income method. Sales comparison method The sales comparison method models market behavior by comparing properties being appraised with similar properties that have recently been transacted. When valuing by this method, absolute ownership is assumed. For the sales comparison method, the valuation model has the following general form: V = f (X 1 ,X 2 ,...,X n), where V is the estimate of the market value (X 1 ...X n) - the characteristics of the property (for example - area of the building, type of walls, etc.) There is a more traditional form of representing the model of the sales comparison method, which, using mass valuation techniques, can be automated and calibrated on market data: V = S c + ADJ c, where V is the market assessment cost S c - the price of the comparison object ADJ c - the total adjustment taking into account the differences between the comparison object and the evaluated object. To carry out computer analysis, it is assumed that there is a representative database, the number of records of which should exceed the number of significant factors by approximately an order of magnitude. In principle, information is initially collected on the maximum number of object parameters. Subsequently, those parameters are selected for which the sample is sufficiently representative and which are significant in the model. After forming a database and creating variables from significant factors, the type of model is selected (we will discuss it below). The next step is to calibrate the model; several techniques are used here:

Paired sales analysis
Multiple regression analysis
Adaptive assessment method (feedback procedure)

An important part of the sales comparison method is the determination of amendments, which can generally be grouped (without taking into account land valuation) into three types:

adjustments for building characteristics (this includes wear and tear)
position corrections
amendments to the terms of the transaction (the most important of which is the time adjustment).

At this stage, we obtain a mathematical expression for the value of an object depending on a number of factors (represented by a set of variables). The result is not a priori (especially regarding the quantitative values of the corrections) and requires a critical approach. Income method The income method is based on determining the value of a property depending on the expected income from its operation and capitalization. Thus, this method is applicable to the valuation of income-producing properties. The income method is based on the assumption that the cost of an object directly depends on the size, duration and degree of reliability of income from the operation of the object. The income method is based on the assumption that future income is worth less than an equal amount of money currently on hand. The extent of this “temporal preference” can be viewed as a function of four factors: the perceived decline in purchasing power (inflation), the decline in the liquidity of the target, the cost of capital or credit management, and risk. Based on the analysis of these factors, the capitalization rate is established. In mass valuation for this method, a database is created with the necessary information on real estate objects. Similar to the sales comparison method, the type of model is selected and calibrated. However, the final result, depending on the task, may be the capitalization rate and the cost of objects and their possible income. Cost method The cost method only applies to developed land (or other improvements). Let us immediately note that with this approach, the cost of land is estimated by comparing sales. The cost method is based on the principle of substitution, according to which the cost of property is equal to the cost of acquiring property of equivalent utility. The land plot is assessed as available for development in accordance with the most effective use. Further, since the market value takes into account the current condition of the building and other conditions, to determine it, accumulated depreciation, expressing the loss of utility of the valued object, is subtracted from the full replacement cost (replacement cost).

Gross rent multiplier (GRM)– an indicator reflecting the ratio of the sales price and gross income of a real estate property (potential or actual), which have similar real estate objects. It is an aggregated indicator and is used as a multiplier to the income of the assessed object. BPM is not adjusted for differences in object characteristics.

Where R i- Selling price i-th similar object;

I i- gross income i-th similar object;

n– number of analogues used (3-5 objects).

The market value of the property being valued is determined by the formula:

(27)

where V is the market value of the property;

I – gross income from the property being valued.

Problem 13: Determine the market value of a one-room apartment if the sales prices and rent levels for three similar apartments in a given city district are known. Market data is presented in Table 7. The assessed one-room apartment is rented for 7.7 thousand rubles. per month.

Table 7 – Calculation of gross rent multiplier

Analogue objects	Market price, thousand rubles.	Rent per month, thousand rubles.	Estimated VRM
Apartment 1
Apartment 2
Flat 3
BRM average

The market value of the assessed one-room apartment is:

3.3 Cost-based approach to real estate valuation

The cost approach is based on determining the costs that are necessary to recreate (replace) the property being valued, taking into account accumulated depreciation. The cost calculated using the cost approach includes the sum of the residual value of the building and the land plot.

(28)

V– the cost of the property;

V L– cost of the land plot;

V restore– cost of restoration (replacement) of the building;

D- accumulated wear and tear of the building being assessed.

General situations for using the method:

special purpose real estate valuation

feasibility analysis for new construction

determining the best, most effective use option

determining the value of real estate in passive markets

when checking assessment results carried out by other assessment methods.

Mandatory situations for using the method:

purposes of property taxation

seizure if necessary to determine the value of buildings, land

income tax purposes

when insuring real estate.

Over time, the cost of structures, buildings and structures decreases for a number of reasons:

wear and tear of the structure during operation;

adverse environmental influences;

changes in construction technology;

influence of external factors.

Depreciation is the loss of the usefulness of a piece of real estate, and therefore its value. Wear happens:

Physical/decrease in cost due to loss of specified consumer properties over time/

Functional/decrease in property value due to non-compliance with modern architectural, aesthetic, planning solutions, comfort/

External/ obsolescence of value due to changes in the external environment; factors do not directly affect the building itself/

Physical and functional wear and tear can be removable or irreparable.

Methods for determining the wear and tear of a building:

Method of breakdown by components.

It consists in separately considering the wear and tear of building structures, taking into account their specific weight in the total cost of the object; taking into account the specific weights of structural elements and their wear values, the total physical wear and tear is determined.

Effective age method.

Based on an examination of the buildings of the property being assessed. It states that the effective age ( EV) refers to the typical economic life span ( SJE), as accumulated wear ( AND) to replacement cost ( Sun).

(29)

A way to compare sales.

It consists of identifying a market assessment of the accumulated depreciation of a building by comparing its replacement cost with current sales prices of similar objects. Subsequence:

Selection of recent sales of properties similar to the one being valued.

Determination of the replacement cost of the building.

Determining the current market value of the building.

Determination of the average value of accumulated wear by difference (V new – V current ) .

Economic life span (ELL)- the period during which the building contributes to the total value of the property is used to increase profits.

Effective age (EA)- time by which the life expectancy of a building is estimated, based on its physical condition, equipment, design, and economic factors.

Problem 14: The replacement cost of a building built 45 years ago is determined to be 14,725 thousand rubles. According to the standard project passport, the economic life of the building is 110 years. The effective age of the building is equal to the actual age. The market value of the land plot using the sales comparison method is estimated at 1,230 thousand rubles. Determine the value of the property.

1 The amount of accumulated wear is determined.

2 The total cost of the property is calculated

Problem 15: Determine the market value of the property if the following initial data are given:

land area 2,917 m2

cadastral value of land 248 rub./m2

useful area of the building 2,000 m2

the cost of construction of the building according to the estimate is 31,262 thousand rubles.

indirect costs are 20% of the construction cost

annual rental loss for the premises is 59 rubles/m2

the gross rental multiplier for a similar property is 4.2.

The following types of restoration work must be carried out in the building being assessed:

roof replacement 150 thousand rubles.

interior decoration 430 thousand rubles.

dismantling and modernization of the heating system 195 thousand rubles.

1. The cost of the land plot is determined (V L)

where S L is the area of the land plot

C K – cadastral value of land of the corresponding type of functional use

2. The full replacement cost of the building is calculated

3. The total (total) accumulated wear (D) is calculated. It is established based on the cost of restoration and repair work.

To physical wear and tear ( D physical) include the costs of replacing the roof and interior finishing.

D physical = 150+430=580thousand roubles.

To the functional – modernization of the heating system.

D func. = 195 thousand roubles.

External wear and tear consists of reduced rent payments. The cost of economic depreciation is determined by capitalizing rental losses or using a gross rental multiplier.

D physical = 2000×59×4.2=495.6 thousand roubles.

4 Find the cost of the property (form. 28)

4. Determining the best and most effective option for using real estate.

1. Location.

2. Market demand.

3. Availability of long-term land lease agreements.

4. Resource quality of the site.

5. Investment attractiveness.

Best and best use analysis is carried out in two cases:

1. Undeveloped area.

2. Building plot (existing improvements).

Remainder for land

Income related to land is defined as the remainder after subtracting from the total income generated by the object, which consists of satisfying the remaining factors of production.

V o = V L + V B (30)

Where V o- total cost

V L– cost of land

V B– cost of buildings and structures

V L = (NOI – V B × R B)/ R L (31)

Where NOI– net operating income

R L– capitalization rate for land

V B × R B– income related to buildings and structures

The method is used for objects with new buildings.

Remaining for buildings and structures

Used to estimate the cost of improvements, provided that the cost is determined with high accuracy. The method is used for a property with outdated and very dilapidated buildings.

V B = (NOI – V L × R L )/ R B (32)

V L × R L – income related to land

4.1 Vacant land

The analysis is carried out in 3 stages:

1. Use options (development strategies) are selected.

2. The cost of new construction is determined for each of the selected options. Factors such as the resource quality of the site and technological feasibility are taken into account.

3. Determine the financial feasibility of the analyzed development strategies. To do this, a forecast report on income and expenses is compiled, net operating income is determined, etc.

Problem 16: Three possible development strategies for the site have been identified: residential building, office building, shopping center. The cost of development is respectively 45.8 million rubles, 54.6 million rubles, 70.0 million rubles. The expected return on investment is 12%. The service life of objects is determined at 90, 50, 50 years. The comparison of development strategies is made based on the residual method for land. The capitalization rate for land is 11%.

1. The capitalization rate for buildings is determined (using the Ring method)

R railway station = 12%+100%/90 = 13.1%

R office building = 12%+100%/50 = 14.0%

R t.c. = 12%+100%/50 = 14.0%

2. Net operating income attributable to buildings is calculated

NOI railway = 45.8 × 0.131 = 6.0 million rubles.

NOI office building =54.6×0.14 = 7.644 million rubles.

NOI t.c. = 70.0×0.14 = 9.8 million rubles.

3. Find the net operating income related to land plots, which is capitalized into the current value of the land

Table 8 – Analysis of the best and most efficient use of land, thousand rubles.

Indicators	Residential building	Office building	Shopping mall
Annual Gross Income
Adjustments for underutilization and losses in collection of payments (loss of rent for space)
Other income (beauty salon, bar, etc.)
Actual Gross Income
Operating expenses (facility operation)
Reserve for replacement of short-lived elements (communications, plumbing, etc.)
Net operating income (total), NOI ABOUT
Income attributable to buildings NOI IN
Net operating income from land, NOI L
Land cost, V L

Conclusion: The best option for using the land is to develop a shopping center, because the value of land is higher and the income from land is greater.

Method of gross rent multiplier (gross income multiplier). The gross rental multiplier is the ratio of the sales price to either potential or actual gross income. The method is carried out in three stages: First stage . The market rental income from the property being assessed is estimated. Second phase. The ratio of gross income to sales price based on recent market transactions is determined. Third stage. The probable value of the property being assessed is calculated by multiplying the market rental income from the property being assessed by the gross rental multiplier. V = D r VRM = D r , where V is the probable sale price of the valued object; D r – rental income of the property being valued; GRM – gross rent multiplier; C anal – the selling price of the analogue; PVD anal is the potential gross income of the analogue. Example. It is necessary to value a property with a high-pressure property at $15,000. The data bank contains the following information about recently sold analogues (see table)

	Sale price Sanal

BRM (averaged over analogues) = (5 + 5.43 + 4.8) : 3 = 5.

V= 15000x5= $75000

The gross rental multiplier is not adjusted for differences that exist between the appraised and comparable properties, since the calculation of the GRM is based on actual rental payments and sales prices, which take into account these differences.

4.3 Application of the cost approach

Before moving on to assessing the cost of buildings and structures using a cost approach, the appraiser must not only read the technical documentation, but also inspect the buildings and structures. This will allow him to draw up a detailed description of the assessment object, which will give the characteristics of external and internal structures and engineering systems. The cost approach includes 3 stages: First stage. Determining the value of the land plot on which the building or structures are located. Second phase. An estimate of the replacement or replacement cost of a building or structure as of the effective valuation date. Third stage. Calculation of all types of wear and tear of buildings and structures. Assessment of the replacement cost of buildings and structures. In this approach, the replacement cost or replacement cost is determined based on the following methods:

comparative unit; element-by-element calculation (breakdown into components); index assessment.Comparative unit method. This method includes several steps:

stage

Cost of building a basic unit

Required area

Construction cost per base unit

Corrections for the characteristics of the object being assessed

Multiplier taking into account local conditions

Full cost estimate

Method of element-by-element calculation of the cost of buildings and structures.

This method is also called the componentization method. The appraiser carries out calculations in the following sequence:

stage.

For example: The unit cost of 1 m² of brick wall consists of the cost of bricks, mortar, workers' wages, and the cost of operating machines and mechanisms. Multiplying the unit cost by the area, we get the total cost of installing the entire element. The entrepreneur’s profit is taken into account either in a unit cost or calculated separately.

stage.

Index method of assessment. It is carried out by multiplying the book value of the object by the corresponding index for the revaluation of fixed assets, approved by the Government of the Russian Federation. This method includes several calculation methods. There are: resource, resource-index, base-index and base-compensation methods. Resource method– this is a calculation in current (forecast) prices and tariffs of resources (cost elements). It is carried out based on the need for materials, products, structures (including auxiliary ones used in the process of work), as well as data on distances and methods of their delivery to the construction site, energy consumption for technological purposes, operating time of construction machines and their composition, labor costs of workers. This method is applied in accordance with the provisions set out in the Methodological Recommendations approved by the letter of the Ministry of Construction of Russia dated November 10, 1992. No. BF-926/12. Resource index method is a combination of the resource method with a system of indexes for resources used in construction. Cost (price, cost) indices are relative indicators determined by the ratio of current (forecast) and basic cost indicators for resources comparable in nomenclature. Of the many possible varieties of this method, it is recommended to use the method of determining the estimated cost of construction based on indicators for individual types of work (PVR), set out in the letter of the State Construction Committee of Russia dated June 4, 1993 No. 12-146. Basis-index method- this is a recalculation of costs according to the terms of the estimate from the base price level to the current price level using indices based on the Methodological recommendations approved by the letter of the State Construction Committee of Russia dated May 31, 1993 No. 12-133. The basic compensation method is the summation of the cost calculated at the basic level of estimated prices and additional costs determined by calculations associated with changes in prices and tariffs for the resources used during the construction process. Until the economic situation in the country stabilizes and the corresponding market structures are formed, the highest priority methods of the index method are the resource and resource-index methods. In practice, the basis-index method is most often used, as it is the simplest. Determination of wear and tear of buildings and structures. After determining the full cost of restoration or replacement, depreciation is subtracted from the resulting value to calculate the residual value of the item. The concept of depreciation used by appraisers and the concept of depreciation used by accountants are different from each other. The term “wear and tear” in valuation theory is understood as the loss of the utility of an object, and therefore its value, for various reasons, and not just due to the time factor. This term is used in a different sense in accounting, where wear and tear is understood as a mechanism for transferring costs to the cost of production over the standard service life of an object. In assessment practice, several methods are used to determine the wear and tear of structures:

partitioning method; lifetime method.

Splitting method.

It consists of taking into account all types of wear and tear, which include:

removable physical wear and tear; irreparable physical wear and tear; removable functional wear; irreparable functional wear; economic (external) wear and tear. Depreciation is considered removable if the cost of eliminating the defect is less than the value added. On the contrary, if the cost of correction is greater than the value added, then the wear and tear is classified as irreparable. Appraisers' clients often require that a list of recoverable items, along with an estimate of restoration costs, be included in the appraisal report. Determination (assessment) of physical wear and tear. Below are tables illustrating the calculation of physical wear and tear, both removable and irreparable.

Determination of impairment due to reversible physical wear and tear

Name of works	Cost, dollars
Site renovation
Repair of water supply network
Interior painting and finishing
Removable physical impairment – total

Determination of impairment caused by irreversible physical wear and tear of short-lived components

Components	Total cost of reproduction	Actual or effective age	Life expectancy	Depreciation, dollars
Ventilation
Sewerage
Heating

Determination of impairment caused by irreversible physical wear and tear of long-lived items

Calculation data	Unit of measurement, dollars
Total cost of reproduction (without developer's profit), dollars.
Removable physical impairment, dollars.
Total cost of reproduction of components with a short lifespan, dollars.
Total cost of reproduction of components with a long life (1-2-3), dollars.
Effective age of the structure, years
Economic life of the structure, years
Wear of long-life components ((5/6) 100), %
Impairment of long-lived components ((4 7)/100), dollars.

Using expert method When calculating physical depreciation, the expert, by inspection, determines the percentage of depreciation of each element of the building, and then the amount of depreciation in monetary terms.

Determination of physical wear and tear

building element	Replacement cost, dollars	Accumulated depreciation, dollars
Foundation
Power system

The percentage of wear of building elements can also be determined as a weighted average value for all elements of the building

Name of the structural element

Specific gravity of a building's structural element

Wear percentage

Share of depreciation in the cost of the building

Determination (assessment) of functional wear. Functional wear, like physical wear, can be removable and irreparable. The criterion for classifying wear as removable or irreparable is the same as in the case of physical wear. Accordingly, the cost of removable functional wear and tear is defined as costs that are reasonable from the point of view of their contribution to future income from the operation of the facility. Removable functional wear is caused by:

shortcomings that require adding elements; deficiencies requiring replacement or modernization of elements. In the first case, it is equal to the difference between the cost of making the required additions at the time of assessment and the cost of making the same additions if they had been carried out initially during the construction of the assessment object. This is explained by the fact that the reconstruction of part of the object is more expensive if this part was created at the time of construction of the object itself. In the second case, removable functional wear is measured by the cost of replacing obsolete elements. Irremovable functional wear and tear can be caused by both a lack and an excess of the qualitative characteristics of the objects being assessed. If there is a shortage, it is measured, in particular, by losses in the amount of rent when renting out a given object. Irremovable functional wear and tear is calculated as follows: Elements of buildings and structures, the availability of which is currently inadequate to modern requirements of market standards, are classified as “extra improvements”. In this case, we are talking about irreparable functional wear caused by an excess of quality characteristics. Example. The intercom systems added $23,000 to the cost of the property and $30,000 in installation costs. Thus, the installation cost for these items was $7,000. The number of unnecessary items typically increases with the age of the property. Determination (assessment) of economic wear and tear. External (economic) wear and tear is expressed in a decrease in the functional suitability of real estate caused by negative factors external to it: the general decline of the area, the unfortunate location of the property, etc. If physical and, to a certain extent, functional wear and tear can be eliminated by reconstructing or modernizing a building, then wear and tear from external influences is in most cases irreparable. It is traditionally calculated by two methods:

related sales,

capitalization of rental losses

This method compares the rental income of comparable properties, where one is exposed to a negative externality and the other is not. Thus, economic depreciation is determined by the formula:

Economic Depreciation = Loss in Rent x Gross Rent Multiplier

Method of calculating lifespan. When applying this method, the following concepts are used:

Economic life

Physical life span

Effective age

Remaining economic life

Standard service life

The relationship between depreciation, replacement cost, effective age and the typical economic life of a building is expressed by the following formula:

I: VS = EV: EJ, where

I – wear; ВС – replacement cost; EV – effective age; EZh – economic life span. This formula can be written as follows:

EV: EJ = Percentage of replacement cost depreciation.

The lifespan method is used both to calculate cumulative depreciation and to calculate any one type of depreciation.

Gross rental multiplier is the ratio of the sale price of the property to the potential or actual gross income received from the operation of the property:

Where URM - gross rental multiplier; Price - the selling price of the analogue.

The method is applied in the following sequence:

1) the market rental income from the property that is being assessed is calculated;

2) the gross rental multiplier is calculated for analogue objects;

3) the probable value of the appraised object is calculated using the formula:

Where PVDon - the potential gross income of the property is estimated.

The gross rent multiplier is not adjusted for differences between the subject property and comparable properties because it is based on actual lease payments and sales prices, which have already taken such differences into account.

54. Features of assessing the technical and technological potential of an enterprise.

The technical and technological potential of the enterprise is realized directly in the production process and, together with human resources, forms the basis of this process.

Its use is intended to ensure appropriate material conditions for the implementation of the economic activities of the enterprise, maintaining the required volume of production and inventory, carrying out transport, packaging and other preparatory operations related to the performance of production functions, the provision of services, work and rest to employees of the enterprise, increasing their productivity and efficiency of economic activities of the entire enterprise. Therefore, its objective assessment plays an important role in the process of forming and assessing the total potential of an enterprise.

The technical and technological basis of any enterprise is machines and equipment, which in economic literature is also called the active part of fixed assets. They constitute a significant part of the enterprise’s property complex and act as objects for assessing technical and technological potential.

Currently, machinery and equipment are the most common and active commodity in the individual asset market. Moreover, for a significant part of machinery and equipment, as a result of the specificity of its functional purpose, the market segment, on the one hand, is limited in size, on the other hand, it is characterized by high mobility in comparison with real estate, which is explained by the systematic active restoration of these assets.

Among the distinctive features of machines and equipment that determine their specificity as objects of assessment in the corresponding market segment, the following can be distinguished:

1) not strictly connected to the land and can be moved to another place without causing irreparable physical damage to both themselves and the real estate to which they were temporarily attached;

2) it is impossible to characterize objects using general technical and economic indicators (cost of 1 m2 of area, 1 m3 of volume, 1 linear meter of length);

3) the functional, constructive, operational characteristics of objects and, accordingly, their price parameters change more dynamically and radically than for real estate objects, intervening the possibility of using average prices;

4) the problem of physical and functional wear and tear is more pressing compared to real estate;

5) the need to take into account compliance with the requirements of standards, technical specifications and other regulatory and technical documentation;

6) the need to take into account the presence or absence of a system of warranty and post-warranty (repair) service, as well as the degree of maintainability;

7) prices of analogues are not always based on cost, acquisition price or residual book value and can be underestimated (for the purpose of expanding, for example, sales markets) or overestimated (for example, through significant marketing and advertising expenses);

8) it is necessary to take into account the stage of the life cycle of the object being assessed and the analogue object (that is, the period of time from the appearance of a specific model of the object to its replacement by new models);

9) the presence of a variety of types, classes, models, manufacturers and sellers, which gives rise to significant variations in price levels;

10) the objects of assessment can be both independent inventory units and their components, and technological complexes.

The purposes of assessing machinery and equipment are varied and can be associated with transactions of their purchase and sale, donation, inheritance, gratuitous transfer, insurance, pledge, lease, liquidation of the property complex of an enterprise, revaluation, etc.

In the practice of domestic appraisal activities, the whole variety of purposes for assessing technological machines, equipment and equipment, depending on the degree of delimitation of the process of assessing machinery and equipment and other types of property of the enterprise, can be reduced to three different targets:

1) valuation of machinery and equipment independent of other types of property. The object of such an assessment is usually individual inventory units, which are complete items or sets of items with all the fixtures and devices related to the object of assessment.

The purpose of determining their market value is purchase and sale, rental, leasing, collateral, etc. In this case, a “bulk” valuation takes place.

2) assessment of many units of machinery and equipment conditionally dependent on each other as one of the stages of assessment (revaluation) of fixed assets. In this case, there is a “stream” or “group evaluation”;

3) assessment of machinery and equipment as one of the stages of assessment of the enterprise as a whole (during its purchase and sale, redistribution of property rights or liquidation).

Under such conditions, the primary objects of assessment, as a rule, are no longer individual inventory units, but entire technological complexes, consisting of machines and auxiliary devices, taking into account the existing production and technological connections both between individual elements and with the engineering and technical infrastructure surrounding them.

Such technological complexes are separated into a single system either according to the production technology of the final product, or at the place of their installation - building, workshop, section, etc. In this case, there is a “system assessment” or “assessment of production and technological systems”.

The choice of the primary valuation object affects the type of value that needs to be determined in the valuation process and the methods for determining it. The same inventory unit can be assessed both as an independent object and as part of a certain group or system. The total estimated value of the entire set of such units will be different, because the utility is different.

55. Features of assessing the value of intangible assets.

The problem of commercial use of intangible assets is directly related to the need for their valuation, which can be carried out for the purpose of:

o purchase and sale of rights to intellectual property or licenses to use them;

o providing franchises to new partners when expanding markets;

o determining the damage caused to the business reputation of an enterprise by illegal actions on the part of other enterprises;

o corporatization, privatization, mergers and acquisitions;

o amendments to the financial statements;

o insurance of property, implementation of collateral transactions, donation, inheritance or gratuitous transfer of enterprise property, etc.

Features of the valuation of intangible assets are:

1. dependence of the value of the value on the volume of transferred rights (the full scope of rights that belong to the copyright owner of intellectual property objects; exclusive rights transferred to the licensor without the licensor retaining the right to use and the right to issue licenses to other persons according to the methods, terms and territories of use; rights transferred to the licensee, with the licensor retaining the right to use and the right to issue licenses to other persons according to the methods, terms and territories of use);

2. the possibility of unauthorized use for objects that do not have legal protection (client relationships, production experience, management and marketing skills, etc.);

3. the need to take into account the possibility of alienation of an intangible asset;

4. mandatory preparatory work for organizing the assessment of intangible assets (inspection of the object for the presence of tangible media, which is the object of assessment - description, drawings, diagrams, product samples, audio and video cassettes and other media; carrying out a legal examination of intellectual property rights with the purpose of identifying the presence and validity of protective documents that confirm these rights - patents, certificates, licensing agreements, etc.; justification of the type of value that is determined: the value of an asset as part of the property complex of an operating enterprise, market value, residual value, etc. .; collection of necessary information, technical, operational, environmental and economic characteristics of the object; sources of income from its use; areas of application of the object; cost and unit price of goods using the object, etc.)

After the preparatory work, the assessment of intangible assets is carried out directly.

3. Assessment of the market value of intangible assets

In the process of assessing intangible assets, generally accepted approaches are used: income, cost and comparative.

The choice of one or another approach to valuation significantly depends on the type and nature of the intangible asset, the stability and nature of the income that is generated with its help, and the possibility of its commercial use.

In the assessment of intangible assets income approach has a special place because it most correctly shows the actual value of intangible assets and their future benefits that the owner will receive from owning them.

56. Assessment of the market value of intangible assets based on income
approach.

The income approach is based on determining the present value of future income.

The first method, the excess earnings method, is used to evaluate goodwill (business reputation). The appraiser's task is to determine the axis around which the price of the upcoming transaction fluctuates. The assessment is carried out according to the “big pot” principle, i.e. all advantages combine and reinforce each other.

At the first stage, the market value of assets or equity is determined.

At the second stage, it is necessary to normalize accounting form No. 2 “Profit and Loss Statement” for atypical income and expenses. Normalization is always carried out on a pre-tax basis. As a result, we get normalized profit. The appraiser works with it.

At the third stage, we determine the expected profit, i.e. the profit that the enterprise would receive if it operated, since on average an enterprise in this industry operates. To do this, we multiply the market value of assets or equity capital by the industry average return on assets (or equity capital).

At the next stage, excess profit is determined. It is the difference between the normalized net profit received by the enterprise and the expected profit determined at the previous stage.

At the fifth stage, we will determine the capitalization ratio. There are two options:

for enterprises whose shares are quoted on the securities market;

for enterprises shares that are not listed on the stock market.

At the final stage, the value of goodwill is calculated by dividing excess profit by the capitalization ratio, and we determine the market value of equity capital taking into account goodwill.

The royalty waiver method is used to estimate the value of patents and licenses. The owner of a patent grants another person the right to use the intellectual property for a certain fee (royalty). Royalty is expressed as a percentage of the total revenue received from the sale of goods produced using the patented product. Under this method, the value of intellectual property is the present value of a stream of future royalty payments over the economic life of the patent or license. The royalty amount is determined based on market analysis.

The royalty exemption method exists in three modifications, differing in the calculation base (gross revenue, additional profit, gross profit).

Calculation of the cost of intellectual property using the royalty exemption method is carried out in several stages.

At the first stage, a forecast of sales volumes for which royalty payments are expected is made (taking into account the product life cycle).

At the second stage, the royalty rate is determined. The data is taken from tables of standard royalty amounts printed in specialized literature.

At the third stage, the economic life of the patent or license is determined. The legal and economic service life may not coincide, so a realistic forecast regarding the duration of payment must be made.

The next step is to calculate expected royalty payments by calculating a percentage of projected sales.

At the fifth stage, all costs associated with securing a patent or license are deducted from the expected royalty payments.

At the sixth stage, discounted profit flows from royalty payments are calculated.

On the seventh step, the sum of the current values of the profit streams from royalty payments is determined.

The formula for the cost of a patent or license based on royalty is as follows:

РE = I=T Vi * Ri* Zi * K,

where Vi is the volume of determined product output under the license in the i-th year (pieces, kg, m3);

Ri is the royalty amount in the i-th year, arb. units;

Zi is the sales price of products under the license in the i-th year, arbitrary units. units;

T - validity period of the license agreement, years;

i - serial number of the considered period of validity of the license agreement;

K is the discount factor.

The profit split method is used when valuing a license.

By this method, the cost of the license is determined as the licensor’s share of the additional profit received as a result of the application of the intellectual property right to use, which is transferred upon concluding a license agreement.

Rlits = I=T (Pr1 - Pr2)i * Vi * Dl-r * Kd,

where Rlic is the cost of the license,

Dl-r - licensor's share,

In world practice, when concluding licensing agreements, the licensor’s share is set in the range from 10 to 30%.

To determine the licensor's share, five pricing factors are taken into account:

Territory indicator.

An indicator of the volume of rights under a license.

Indicator of legal protection.

Patent purity indicator

An indicator of the volume of transferred documentation.

The profit advantage method is often used when estimating the value of inventions.

The value of an invention is determined by the profit advantage expected to be gained from its use. Profit advantage refers to additional profit due to the subject intellectual property being valued. It is equal to the difference between the profit received from the use of inventions and the profit that the manufacturer receives from the sale of products without using the invention. This annual profit advantage is discounted by the expected period of its receipt.

Thus, the cost of the invention can be calculated using the formula:

Rlits = I=T (Pr1 - Pr2)i * Vi * Kd, where

Rlic - license cost,

I=T (Pr1 - Pr2)i - additional profit per unit of production, I=1

Vi - sales volume in physical units,

Kd - current value factor,

T is the number of forecast years.

To calculate additional profit within the framework of this method, the methodology of the royalty exemption method (second modification) can be used.

The method of assessing the value of intellectual property through the equity participation ratio is used only for the assessment of inventions and utility models. This technique was developed by Rospatent.

In the production of products, either one or several inventions can be used.

In the first version, the basic formula is:

Poi = Commun. * Kdu, where

Poi is the profit that accrues to the invention being valued,

General - profit received by the enterprise as a result of the sale of products that are created using this invention.

Kdu is the coefficient of equity participation of the evaluated invention.

Kdu = K"1 * K"3* K"4, where

K"1 - coefficient of achievement of results,

K"3 - coefficient of complexity of the solved technical problem,

K"4 - coefficient of novelty.

In the second option, the basic formula is:

Poi = P of all inventions. * KDU of the evaluated invention

Pall inventions = Total. * Where are all the inventions?

Kdu of all inventions = K"1max * K"3 max * K"4 max. (8) i.e. we select the maximum values of these coefficients among the coefficients of all evaluated inventions.

K"1 rated image * K"3 rated image image * K"4 rated image.

Kdu of the assessed = (K"1 rated image * K"3 rated image * K"4 rated image+ ...+ K"1 n image*

* K"3 n image* K"4 n image) inventions

57. Excess profit method.

It is based on the premise that excess profits are brought to the enterprise by intangible assets not reflected in the balance sheet, which provide a return on assets and on equity capital above the industry average. This method primarily estimates the value of goodwill.

The main stages of this method:

1. Determine the market value of all assets.

2. Calculate the normalized profit of the enterprise being valued.

3. Determine the industry average return on assets or equity.

4. Calculate the expected profit based on multiplying the industry average income by assets (or by equity capital (floor 1 x floor 3).

5. Determine excess profit (floor 2 - floor 4). To do this, the expected profit is subtracted from the normalized profit.

6. Calculate the value of intangible assets (goodwill) by dividing excess profits by the capitalization ratio. To better assimilate the material, you should use a clear example of calculating goodwill, which allows you to combine theoretical principles with valuation practice.

Example: Suppose the market value of the company's assets is estimated at $40,000, normalized net profit is $8,000. The average return on assets is 15%. Capitalization rate -20%. It is necessary to estimate the value of goodwill. The calculation algorithm will have the following form.

It must be taken into account that the appraiser must remove non-operating assets from the market value of assets, as well as non-operating income from the actual net income of the enterprise. Some appraisers use the average of assets and average earnings over a specified period of time, usually five years, to calculate excess earnings. But this approach is justified if the data for the selected period reflect reasonable future expectations; moreover, “abnormal years”, with profit levels significantly above or below average, should be excluded from consideration. Using a simple average or weighted average of profits over the past several years without taking into account how retrospective information reflects possible future profits will lead to undervaluation or overvaluation of the enterprise. The most important problem when using the excess earnings method is the correct choice of capitalization rate to calculate the value of goodwill. The value of goodwill is determined by its ability to generate economic profit. Typically, investors pay for the expected future profits generated by goodwill over a period not exceeding five years. Under such assumptions, the capitalization rate is calculated as the reciprocal of the number of excess profit-generating years for which the investor is willing to pay. For example, if an investor is willing to pay an amount equivalent to five years of excess income, then the capitalization rate will be equal to 1:5 == 0.20 = 20%

Gross rent multiplier method. (VRM)

Gross rental multiplier is an indicator reflecting the ratio of the sale price and gross income of a property. This indicator is calculated for similar real estate objects and is used as a multiplier to the adequate indicator of the property being assessed.

Stages of real estate valuation using the gross rental multiplier:

1. The gross income of the assessed object, either potential or actual, is estimated;

2. At least three analogues of the property being valued are selected, for which there is reliable information about the sales price and the amount of potential or actual income;

3. Necessary adjustments are made to increase the comparability of analogues with the object being evaluated;

4. For each analogue, the gross rental multiplier is calculated;

5. The final VRM is determined as the arithmetic average of the calculated VRM for all analogues;

6. The market value of the appraised object is calculated as the product of the average GRM and the estimated adequate gross income of the appraised object.

7. The probable market value of the property being valued is calculated using the formula:

Сн = PVDots (DVDots)xVRMSr (1)

where CH is the estimated market value of the property being valued; PVDots - potential gross income from the assessed object; DVDots - actual gross income from the assessed object VRMsr - gross rental multiplier; Tsa - sale price of a similar property; or by the formula:

Сн = PVDots (DVDots)x (Tsa1/PDV1+...+Tsan/PVDan):n (2)

where Tsa1 is the sale price of the first similar object; PVD1 - potential gross income from the first similar object; Tan is the sale price of the n-th similar object; PVDan - potential gross income from the n-th similar object; n - number of similar objects.

GRM is considered a market method for valuing an income-generating property

property, since this indicator takes into account sales prices and gross rental income for objects sold on the market. Example: The appraiser must determine the market value of a property whose potential gross income is 30,000 thousand rubles. The information database contains information about recently sold analogues.

We calculate the average gross rental multiplier for analogues and its average value: (105,000: 35,000 + 96,000: 28,000 + 110,000: 31,000): 3 = 3.3257. GRM does not adjust for differences between the subject of valuation and comparable analogues, since the calculation of VRM is based on actual rental payments and sales prices, which already take into account these differences. The market value of the property being valued is 30,000 x 3.3257 = 99,770 (thousand rubles)

The gross rental multiple should not be adjusted for amenities or other differences that exist between the comparables and the subject properties. The GRM calculation is based on actual lease payments and sales prices prevailing in the market. If there are differences in amenities or level of services between the comparable properties and the properties being evaluated, it is assumed that these differences have already been factored into the sales prices and rental rates.

The method is quite simple, but has the following disadvantages:

1. 1.Can only be used in conditions of a developed and active real estate market, i.e. The property being valued must be located in a market in which there are regular sales and purchases of competitive properties based on the income they generate.

2. 2.Does not fully take into account the difference in risks or capital return rates between the subject of assessment and its comparable counterpart;

3. It also does not take into account the likely difference in the net operating income of the compared objects.