“10 ESSENTIAL VALUATION FORMULAS”
‘MASTER THE IBBI EXAM“
IBBI Examination Syllabus: Mathematics of Valuation – Key Concepts and Formulas
IBBI Valuation Exam
The top 10 most important formulas for the IBBI Valuation Exam are explored in this video. By understanding and applying these formulas, you’ll be better equipped to succeed on the exam and gain a deeper understanding of real estate valuation.
In this video, we dive deep into essential topics covered under the Mathematics of Valuation for the IBBI (Insolvency and Bankruptcy Board of India) examination. These concepts are critical for candidates preparing for roles in the insolvency and bankruptcy process. We will cover:
Annuities – Understand the types of annuities (ordinary and due) and how to calculate present and future values using the formulae for annuities.
Capitalization and Rate of Capitalization – Learn how to calculate the value of an asset or income stream by applying the capitalization method and determining the appropriate capitalization rate.
Years Purchase – Explore the concept of years purchase and its application in determining the value of an income stream or property.
Sinking Fund – Understand the role of sinking funds in the context of valuing a liability that is paid off over time and the formulae involved in their calculation.
Redemption of Capital – Get insights into how businesses or entities redeem capital, the various techniques used, and their impact on valuation.
Reversionary Value – Study how to compute the reversionary value of an asset, especially in scenarios involving life interests or leasehold properties.
Construction and Use of Valuation Tables – Learn how to construct and use various valuation tables for annuities, present value factors, and more, to simplify and speed up valuation calculations.
Whether you’re a beginner or looking to refine your skills, this video will help you grasp these critical valuation concepts, making it easier for you to apply them in your professional examinations and real-world scenarios