The use of the Discounted Cash Flow (DCF) method as a method of valuation within the South African property industry: A critical review

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dc.contributor.advisorMooya, Manyaen_ZA
dc.contributor.authorPienaar, Petrus Terblancheen_ZA
dc.date.accessioned2015-09-30T13:42:12Z
dc.date.available2015-09-30T13:42:12Z
dc.date.issued2015en_ZA
dc.description.abstractThe Discounted Cash Flow method of property valuation is a fairly new method and research in other English speaking countries indicated a trend towards the use of the DCF method in preference to the Capitalization method despite an initial hesitance due to the perceived complexity of the method. The aim of this study was therefore to form an understanding if similar perception of complexity exists in South Africa and how these perception influence the perceptions and preference of use of the DCF method of valuation by valuation professionals within the South African context. The research was guided by three specific research questions which probed valuers' methodology preference, valuers' education, and difficulties experienced in accessing data needed for DCF valuation input variables. A mixed method research approach was adopted using questionnaire and document surveys to gather data from valuation professionals, lecturers of valuation education programs accredited with the SACPVP, and the curricula of these programs. The results indicate a general low preference for the use of the DCF method of valuation while the Capitalisation method is indicated as the most preferred method. This low preference was found to be the result of a high degree of difficulty experienced in accessing data needed for DCF valuation input variables. It was also found that the level of valuation education increases the acceptance and preference for the use of the DCF method.en_ZA
dc.identifier.apacitationPienaar, P. T. (2015). <i>The use of the Discounted Cash Flow (DCF) method as a method of valuation within the South African property industry: A critical review</i>. (Thesis). University of Cape Town ,Faculty of Engineering & the Built Environment ,Department of Construction Economics and Management. Retrieved from http://hdl.handle.net/11427/14125en_ZA
dc.identifier.chicagocitationPienaar, Petrus Terblanche. <i>"The use of the Discounted Cash Flow (DCF) method as a method of valuation within the South African property industry: A critical review."</i> Thesis., University of Cape Town ,Faculty of Engineering & the Built Environment ,Department of Construction Economics and Management, 2015. http://hdl.handle.net/11427/14125en_ZA
dc.identifier.citationPienaar, P. 2015. The use of the Discounted Cash Flow (DCF) method as a method of valuation within the South African property industry: A critical review. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Pienaar, Petrus Terblanche AB - The Discounted Cash Flow method of property valuation is a fairly new method and research in other English speaking countries indicated a trend towards the use of the DCF method in preference to the Capitalization method despite an initial hesitance due to the perceived complexity of the method. The aim of this study was therefore to form an understanding if similar perception of complexity exists in South Africa and how these perception influence the perceptions and preference of use of the DCF method of valuation by valuation professionals within the South African context. The research was guided by three specific research questions which probed valuers' methodology preference, valuers' education, and difficulties experienced in accessing data needed for DCF valuation input variables. A mixed method research approach was adopted using questionnaire and document surveys to gather data from valuation professionals, lecturers of valuation education programs accredited with the SACPVP, and the curricula of these programs. The results indicate a general low preference for the use of the DCF method of valuation while the Capitalisation method is indicated as the most preferred method. This low preference was found to be the result of a high degree of difficulty experienced in accessing data needed for DCF valuation input variables. It was also found that the level of valuation education increases the acceptance and preference for the use of the DCF method. DA - 2015 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2015 T1 - The use of the Discounted Cash Flow (DCF) method as a method of valuation within the South African property industry: A critical review TI - The use of the Discounted Cash Flow (DCF) method as a method of valuation within the South African property industry: A critical review UR - http://hdl.handle.net/11427/14125 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/14125
dc.identifier.vancouvercitationPienaar PT. The use of the Discounted Cash Flow (DCF) method as a method of valuation within the South African property industry: A critical review. [Thesis]. University of Cape Town ,Faculty of Engineering & the Built Environment ,Department of Construction Economics and Management, 2015 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/14125en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentDepartment of Construction Economics and Managementen_ZA
dc.publisher.facultyFaculty of Engineering and the Built Environment
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherProperty Studiesen_ZA
dc.titleThe use of the Discounted Cash Flow (DCF) method as a method of valuation within the South African property industry: A critical reviewen_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMScen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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