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DCF Method

Discounted cash flow method – method used to calculate value e.g. the fair value of properties. It is based on the financial concept of discounting cash flows to determine the capital value.

Application of the DCF method at HAMBORNER

To calculate the fair value of our properties, we have our portfolio valued by an independent expert at the end of each financial year. The market values of property are calculated in line with internationally recognised standards using the discounted cash flow method (DCF in accordance with IFRS 13). Under this method, the market value of a property is calculated as the total of the discounted cash flows for the entire planning period, usually ten years, plus the residual value of the property calculated on the basis of its long-term free cash flow less costs to sell, also discounted to the measurement date.

More information on this can be found in our annual reports.