Plant and Equipment Valuation QLD
Asset Valuers Queensland
Asset Valuers Queensland
Machinery Valuers in Queensland
Plant and Machinery Valuers Brisbane QLD
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Plant and Equipment Valuation Methodologies

There are several valuation methodologies used by the valuers of Plant and Equipment Valuation QLD. A Brisbane plant & equipment valuer uses their education, training, experience, and expertise to determine the best method/s to use when conducting their valuations. Normally, a valuer will use one primary method of valuation that is the most suitable for the intended purpose of the report. Along with the primary valuation, there may be 1-2 methods used as support to provide more information, and/or clarify the findings of the primary method.

There are three most used methods of asset valuation used by a plant and equipment valuer in Brisbane, which are:

  • Comparative Sales
  • Income Capitalisation
  • Cost Summation

Comparative Sales

This method is commonly referred to as the comparative approach to valuations. It relies on the use of comparables in the market to calculate the subject’s market value. The preferred comparable is an item that closely resembles the asset in location, size, use, model, design, or operation. Ideally, the comparable is exactly the same as the subject asset in every way.

This is one of the most heavily used fixed asset valuation methods and all other types of valuations including business valuations and property valuations. It requires at least 3 appropriate comparables. If there is any difference between the comparable and the asset, it will be stated in the report and the valuer will adjust their calculations accordingly.

For some assets, it may be difficult or even impossible to find a good comparable. There are even cases where there is little or no availability of a particular asset due to its age. In such cases, a valuer may adopt the use of a modern equivalent asset (MEA). Like other comparables, it must serve the same purpose or function in a similar manner but is simply designed or constructed with more updated methods.

Income Capitalisation

This is one of many capitalisation methods but primarily relies on the income an asset can generate. A valuer calculates the value of an asset using its net operating income and its capitalisation rate. This is an excellent method for valuations ordered by investors as it allows comparing possible investments and provides an estimated prediction of the potential return on investment.

While this is one of the most preferred asset valuation methods for investors, it is very rarely used on its own. This is ordinarily combined with other methods such as the comparative sales method.

Cost Summation

Also known as the cost approach, this methodology involves an investigation of all variables that have an influence on the overall value of the asset. There exist over 200 possible variables, and our valuers have the expertise to determine what applies to any asset. When investigating an asset, plant and equipment valuers can examine the following:

  • Location: for property, this can be the suburb/city of the property and all relevant location details. For other types of assets, this can also be its physical location as well details on its storage.
  • Age and Condition: this can apply to any asset. Its age can greatly impact available data, the number of influences on its value and as well as its condition. The condition of the asset will take into consideration its maintenance, repairs and/or restoration.
  • Remaining useful life: fixed assets are not regularly replaced, sold, or consumed but they may not last forever. This is particularly the case with equipment, appliances, and machinery as they may need to be replaced when it no longer functions or due to obsolescence. A valuer may estimate the time an asset can still be useful and use this in their calculations of value.
  • Depreciation method: while some think that depreciation is a process of asset valuation, it is not. It is a cost allocation process. There are several different methods that are disclosed in the report.

Once all variables have been accounted for, the asset valuer then calculates the sum to determine the value of the asset. This is one of the most used valuation methods for a range of items along with the comparative sales method.

Why Choose Us?

The team of valuers here at Plant and Equipment Valuation QLD is made up of the most experienced plant & equipment valuers in Brisbane. Each valuer has over 20 years of experience as a certified plant & machinery valuer. This level of experience allows us to provide the best and most efficient service for our clients.

Our valuers bring more than just experience—they are fully accredited by the Australian Property Institute (API), proving that they meet the highest standards of professional valuation. Many of our experts also hold AVI and RICS qualifications, further reinforcing their expertise. By strictly adhering to the API’s guidelines of conduct, ethics, and practice, our team guarantees that you can trust and rely on the integrity, accuracy, and quality of our service every time.

For more about us and our valuation methods, contact a friendly member of the Plant and Equipment Valuation QLD team. We are always prepared to help. Contact us by calling (07) 3088 8036 or by filling out our handy contact form.