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The use of the Discounted Cash Flow (DCF) method as a method of valuation within the South African property industry: A critical review
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...
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| Format: | Thesis |
| Language: | English |
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Department of Construction Economics and Management
2015
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| _version_ | 1867613990079692800 |
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| access_status_str | Open Access |
| author | Pienaar, Petrus Terblanche |
| author2 | Mooya, Manya |
| author_browse | Mooya, Manya Pienaar, Petrus Terblanche |
| author_facet | Mooya, Manya Pienaar, Petrus Terblanche |
| author_sort | Pienaar, Petrus Terblanche |
| collection | Thesis |
| description | 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. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/14125 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:44:55.300Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2015 |
| publishDateRange | 2015 |
| publishDateSort | 2015 |
| publisher | Department of Construction Economics and Management |
| publisherStr | Department of Construction Economics and Management |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/14125 The use of the Discounted Cash Flow (DCF) method as a method of valuation within the South African property industry: A critical review Pienaar, Petrus Terblanche Mooya, Manya Property Studies 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. 2015-09-30T13:42:12Z 2015-09-30T13:42:12Z 2015 Master Thesis Masters MSc http://hdl.handle.net/11427/14125 eng application/pdf Department of Construction Economics and Management Faculty of Engineering and the Built Environment University of Cape Town |
| spellingShingle | Property Studies Pienaar, Petrus Terblanche The use of the Discounted Cash Flow (DCF) method as a method of valuation within the South African property industry: A critical review |
| thesis_degree_str | Master's |
| title | The use of the Discounted Cash Flow (DCF) method as a method of valuation within the South African property industry: A critical review |
| title_full | The use of the Discounted Cash Flow (DCF) method as a method of valuation within the South African property industry: A critical review |
| title_fullStr | The use of the Discounted Cash Flow (DCF) method as a method of valuation within the South African property industry: A critical review |
| title_full_unstemmed | The use of the Discounted Cash Flow (DCF) method as a method of valuation within the South African property industry: A critical review |
| title_short | The use of the Discounted Cash Flow (DCF) method as a method of valuation within the South African property industry: A critical review |
| title_sort | use of the discounted cash flow dcf method as a method of valuation within the south african property industry a critical review |
| topic | Property Studies |
| url | http://hdl.handle.net/11427/14125 |
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