Property Valuation Service
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USP is a leading Valuer of Land & Building. We assess true and fair Value of immovable assets in an arm’s length transaction. We derive Fair Market Value using suitable valuation approach, considerations and subsequent events. Mission – To provide true valuation services within agreed timelines
About Us
Padmadhar Upadhyay studied Civil Engineering at NIT Silchar and graduated 1st Class in 2003. He is a Registered Valuer- Land & Building with IBBI and Wealth Tax Valuer under Section 34AB. He has an experience of 21 yrs across Construction and Valuation. Why USP 1. Precise Market Insight as all USP surveyors belong locally. 2. Filtered Database since 12 years and updated every day. 3. More than 1.5 L Valuation reports generated 4. All Major Banks, NBFCs, FIs are clients. Helps with Policy framing and mitigants. 5. Focussed only in NCR, UP and UK to maintain Quality. 6. Faster TAT, helps in quick decision making for FIs.
Services
USP undertakes Valuation work for – 1. Bank/NBFC Collateral 2. Approved Project Finance 3. Construction Finance 4. VISA purpose 5. Wealth Tax Valuation under 34AB (Income Tax) 6. Companies Act under IBBI 7. Insolvency and Bankruptcy Code (IBC) Types of Property covered – Land, Flat, House, Commercial Mall, Office, Factory, School, College and University, Hotel, Hospital.
Valuation Approach
Valuation approaches and methods (IVS Valuation Standard 105) The appropriateness of a valuation approach for determining the value of an asset depends on valuation bases and premises. The key factors to consider while determining the appropriateness of a specific valuation methodology are • Nature of asset • Availability of reliable inputs • Pros and cons of each valuation approach/method • Valuation approach used by other market participants Value vs Price Value – Value is the estimate of the worth of an asset by applying the valuation procedures appropriate for a valuation engagement. Price– Price is the amount of money or any other means of consideration asked for or given in exchange for the asset. It is an ex-post measure: an outcome of a transaction, a precise measure which may or may not have a relationship with the value of the underlying asset. Fundamental Concepts in Valuation: Time Value of Money (TVM) • The principle that a sum of money today is worth more than the same sum in the future due to its potential earning capacity. • Concepts: Present Value (PV), Future Value (FV), Discounting, Compounding. Cost of Capital • The rate of return that capital could be expected to earn in an alternative investment of equivalent risk. • Types: Cost of Debt, Cost of Equity, Weighted Average Cost of Capital (WACC). Risk and Return • The concept that potential return rises with an increase in risk. • Higher risk investments should offer higher returns to compensate investors for the increased uncertainty. Discount Rate • The rate used to discount future cash flows to the present value. • Reflects the opportunity cost of capital and the risks associated with future cash flows. Capital Asset Pricing Model (CAPM) • A model that describes the relationship between risk and expected return. • Formula: Expected Return = Risk-Free Rate + β(Market Return−Risk-Free Rate. Beta (β) • A measure of a stock’s volatility in relation to the market. • Beta > 1: More volatile than the market, Beta < 1: Less volatile than the market. Market Risk Premium • The additional return over the risk-free rate required by investors to compensate for the risk of investing in the stock market. Free Cash Flow (FCF) • Cash generated by a company that is available for distribution to the company's security holders. • FCF is often used in Discounted Cash Flow (DCF) valuation models. Key Approaches in Valuation – The three main valuation approaches are- • Market approach • Income approach • Cost approach 1. Market Approach – This involves comparing the subject property with recent sales of similar properties in the same location. Adjustments are made for differences in size, condition, and other factors. 2. Income Approach: Particularly relevant for income-generating properties, this approach values property based on the present value of expected future cash flows, typically using a capitalization rate. 3. Cost Approach: This method estimates the value of the property based on the cost of replacing the property (less depreciation) and adding the land value. Pros and Cons of Valuation Methods Market Approach Pros: • Realistic valuations as they are benchmarked to current valuations • Simpler compared to DCF • Flexible and can be used in multiple use cases • Less impacted by valuer bias Cons: • Volatile • Markets may not value assets fairly at all points of time • Adequate and reliable transaction multiples may not be available Income Approach Pros: • Theoretically correct • Forward looking • Incorporates risk and time value of money • Focuses on cash returns Cons: • Limited applicability in services industries and new companies • Volume and complexity of assumptions • Adequacy of data • Sensitive to changes in assumptions Cost Approach Pros: • Easy to compute • Relatively stable Cons: • Does not factor in value of intangible assets • Impacted by accounting policies • Assumes all assets have profit generating value • Ignores returns vs cost of capital Considerations in Valuation- • Location Location Location : The property's location is a significant factor in determining its value, particularly in terms of access to markets, infrastructure, and local economic conditions. • Condition and Age: The physical condition and age of the property will impact its value, particularly in the cost approach where depreciation is considered. • Zoning and Legal Constraints: Zoning laws, land use regulations, and environmental restrictions can significantly influence the value of real estate. • Highest and Best Use: The concept of highest and best use is crucial in real estate valuation, which assumes that the property will be used in the most profitable way legally possible. Subsequent Events – • Subsequent events are indicative of the conditions that were not known or knowable at the valuation date, including conditions that arose subsequent to the valuation date. • Generally, a valuer would consider only circumstances existing at the valuation date and events occurring up to the valuation date. • However, events and circumstances occurring subsequent to the valuation date, may be relevant to the valuation depending upon, inter alia, the basis, premise and purpose of valuation. • In the event such circumstances / events are considered by the valuer the same should be explicitly disclosed in the valuation report.
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contact@usponline.in Address – NCR -Head Office B 106 Sector 63 Noida UP-201307 Ph- 0120-4515442 usp@usponline.in Address -UP- Lucknow Office 728 Eldeco Udyan 1 Bangla Bazaar Lucknow-226002 Ph- 0522- 4333596 uspup@usponline.in Address -UP – Agra Office Unit No 15, 1st Floor Block S-21 Behind Hotel Nuova, Sanjay Place Agra-282002 Ph- 0562 -4059486 uspup@usponline.in Address -UK-Dehradun Office ABC Business Park, Above PNB, D6 2nd Floor, 16 Tagore Villa, Chakrata Road Dehradun -248001 Ph- 0135- 3189866 uspuk@usponline.in Address – UK – Haldwani Office Trishul Complex , Jagdamba Nagar (Behind Durga City Centre) P.O Bhotia Parao Haldwani Distt: Nainital Uttarakhand – 263139 Ph- 0594-6360157 uspuk@usponline.in Base Locations Covered Delhi NCR – Delhi, Gurugram, Noida, Gr Noida, Ghaziabad, Bulandshahr, Meerut UK – Dehradun, Rishikesh, Haridwar, Roorkee, Rudrapur, Kashipur, Haldwani UP – Agra, Mathura, Kanpur, Etawah, Lucknow, Gorakhpur, Bareilly, Amroha, Muzaffarnagar, Moradabad, Saharanpur
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