1. Real Estate

Real estate is a tangible asset that can be easily valued using traditional methods. In order to value real estate, we need to know how much money the property would sell for if it were sold today. We then subtract any outstanding mortgages and add in any improvements that have been made to the property. Finally, we divide the total amount by the number of years remaining until the property is paid off.

2. Inventory

Inventory is a tangible asset that consists of items that are currently owned by an organization. When valuing inventory, we first determine what the cost basis of each item is. Then we multiply the current market price for each item by its cost basis. Next, we deduct any depreciation from the total valuation. Lastly, we divide the total by the number of months left before the end of the fiscal year.

3. Vehicles

Vehicles are tangible assets that can be easily valued. To do so, we first calculate the vehicle’s book value. Book value is simply the original purchase price minus any outstanding loans or liens. Next, we deduct the estimated salvage value of the car. Salvage value is the estimated selling price of the vehicle after it has been repaired. Finally, we divide book value by the number of months remaining until the vehicle is paid off.

4. Equipment

Equipment is tangible asset that can be evaluated using similar methods as vehicles. First, we calculate the equipment’s book value. Book Value is equal to the original purchase price minus outstanding loans or liens and any depreciation. Next, we estimate the equipment’s salvage value. Salvage value is calculated by multiplying the estimated selling price of a comparable piece of equipment by the estimated useful life of the equipment. Finally, we divide equipment’s book value by the number months remaining until the equipment is paid off.

5. Other Assets

Other assets are intangible assets that cannot be easily valued. These assets may include patents, trademarks, copyrights, and brand names. Intangibles are difficult to value because they are not physical objects. Instead, they represent rights and privileges that are granted to individuals or organizations. Because intangibles are hard to value, their values are often determined based on their potential future earnings.