What does asset appraisal mean?

Asset evaluation is a process of estimating the value of an asset at a certain point in time. It can be calculated by market price, financial data, market prospect, market demand and other factors. Asset evaluation helps investors to understand the risk and value distribution of their portfolio and provides important reference for investment decision-making.

The purpose of asset appraisal is to convert assets into figures and give a reasonable appraisal. In the stock market, the company's stock price reflects the market's expectation of the company's future profits and development prospects, and the stock valuation also reflects the views of stock investors on the company. In the real estate market, factors such as location, property status, surrounding facilities and market demand are considered in housing valuation, which reflects the market value of real estate.

Asset evaluation is a complicated process, and various theories and methods need to be used in practice. At present, the commonly used evaluation methods are price-earnings ratio model, cash flow model, dividend discount model and capital asset pricing model. In asset appraisal, we need to weigh various factors and use various methods to verify each other in order to get more accurate appraisal results. The accuracy of asset appraisal directly affects the decision-making of investors, so it is very important.