    # Basic Valuation Model Valuation is the process that establishes the link between the risk and return to find the value or worth of an asset. The inputs required for basic valuation are:
• The expected returns in terms of cash flows with their respective timings of occurrence.
• Risk in terms of the required return
The expected returns can either be annual or intermittent or sometimes even for once.

Basic Valuation Model:

The basic value of an asset or a security is the sum of discounted value of all the future expected cash flows. The discount rate is the rate used as the required rate of return which is dependent upon the level of risk. If the investment in the asset is very risky, higher would be the discount rate. If the investment in the asset is less risky, lower would be the discount rate. To sum up, the value of an asset is the present value of all the future expected cash flows discounted at the required rate of return. Symbolically, the Value of an asset (V) = Where:

CF = Cash flows expected at the respective year-ends

r = Discount rate (required rate of return)

n = The last period of cash flow occurrence

Example:
If the required rate of return is 10%, calculate the value of asset A & B given the following cash inflows: Asset A: Basic Valuation Asset B: Basic Valuation Online Live Tutor Basic Valuation Models:

We have the best tutors in Finance in the industry. Our tutors can break down a complex Basic Valuation Model problem into its sub parts and explain to you in detail how each step is performed. This approach of breaking down a problem has been appreciated by majority of our students for learning Basic Valuation Model concepts. You will get one-to-one personalized attention through our online tutoring which will make learning fun and easy. Our tutors are highly qualified and hold advanced degrees. Please do send us a request for Basic Valuation Model tutoring and experience the quality yourself.

Online Basic Valuation Model Help:

If you are stuck with a Basic Valuation Model Homework problem and need help, we have excellent tutors who can provide you with Homework Help. Our tutors who provide Basic Valuation Model help are highly qualified. Our tutors have many years of industry experience and have had years of experience providing Basic Valuation Model Homework Help. Please do send us the Basic Valuation Model problems on which you need Help and we will forward then to our tutors for review.       • 