There is value in understanding where value creation comes from and to be able to estimate it as accurately as possible. When it comes to measuring value the Discounted Cash Flow model has long been recognized in academic circles and it has also been used in some industries. In recent years also the real estate industry in Denmark has adopted the model
Pension funds, real estate funds and real estate companies and a number of other market players who work professionally with valuation of real estate often use a lot of resources in the ongoing valuations of real estate portfolios. The processes are often time consuming and the systems used are often a source of error.
Simpler Valuation is web-based software that automates and uniforms the calculation method for valuation of commercial properties using the DCF method. The system makes it possible to develop sensitivity analysis and scenario analysis for both a single property and for real estate portfolios.
Simpler Valuation revolutionizes the assessment methods and business processes and provides the user with greater overview and security - using fewer resources and less risk of error in calculation and data.
Simpler Valuation uses the DCF model, which allows building a number of assumptions into the calculation about the individual property valuation. This creates a transparent valuation, where the assumptions that are the basis for the valuation, are evident from the property's cash flow.
The system is web-based and thus very easy to connect to and can be accessed "on the fly" with your smartphone, iPad or other. Additionally, it requires no installation, and there are no specific IT requirements for use of the system.
It is possible to integrate the system with the company's financial system so that data can be imported directly into Simpler Valuation. This minimizes the risk of error in the date entry process since the workflow is significantly easier and faster. Continuous updates of valuations with new data are thus very fast.
Changes in valuations are stored in a log, and different user rights can be set up, providing greater security and validity. Differentiated user rights are also very relevant for larger organizations where multiple people can provide input for the valuation. For instance an administrator could only have limited rights to create and edit in valuations, a controller would validate the valuations before eventually they are sent to the Executive Board for approval.
The valuations can be exported to both Excel and PDF. PDF files can be customized using the company’s own layout and logo.
The system has been thoroughly tested and is based on the Danish Property Federation's recommendations for the valuation of commercial properties.
The Standalone version (not integrated towards a BI system) is characterized in that the user enters data into the system. The primary users of this version are typically banks, mortgage companies, accountants and brokers, who all make external valuations of properties.
The Enterprise version (integrated towards a BI system) is characterized in that relevant data is imported from another system, for example (but not exclusively) from Unik Bolig 4, so that the user only needs to provide a minimum of input. It is also possible after the import of data to modify the imported data and it is clearly shown whether the data is imported, entered or imported and then modified. The primary users of this version will typically be property companies and funds, property managers and pension funds and others who have a BI system with valuation relevant data.
The core of Simpler Valuation is the same no matter which of the two variants is chosen.
Easy to use DCF valuation
Differentiated user rights = higher security
Minimization of error in both data input and calculation, change tracking, export to both Excel and PDF
Field-tested and based on the Danish Property Federation's recommendations on valuation of investment properties
" Simpler Systems has in a very professional manner simplified the way we work with our data and saves us a lot of time every day. At the same time our data quality has significantly improved. We believe that as a result of our cooperation with Simpler Systems, we make better decisions today than we have done in the past."
CEO, Nordicom A/S