The responsibility of seller increases in Category F of the Incoterms, wherein the seller is required to transport the products to the main carrier (i.e. Shipping Terminal, Warehouse, Airport and so).
Relative Valuation prices an asset compared to similar assets in market. The process, though not sophisticated, yields better conclusions with less information and short turn-around. The key is to identify the comparable assets; look at their standardised prices and take a call.
Intrinsic valuation identifies the net present value of the free cash flows to the firm by incorporating the risk and growth rate of such cash flows. Growth rate looks at the growth of the cash flows over the period, and discount rate converts the future cash flows to their present value.
Do we know the value of the apartment that is up for sale? By how much is the price of the highly marketed IPO of a new age company over its intrinsic value? From fair value accounting to venture capital investing, from acquisition price to borrowing terms – we need to understand the fundamentals of valuation.