Valuation
Frame value with cap rate, price per unit, price per square foot, and comps where available.
Purpose
Valuation connects operating income to pricing context and deal screening decisions.
When to use it
NOI and price are known.
You need price context before financing.
You are comparing a deal to market assumptions.
Inputs needed
NOI
Purchase or asking price
Square footage or units
Cap rate or comp assumptions
How to read the output
Cap rate is only as credible as NOI and price.
Price per square foot and unit are context metrics, not standalone conclusions.
Trust labels show provisional versus modeled support.
Common mistakes
Comparing cap rates across unlike property types.
Using stale comps without source notes.
Treating valuation output as an appraisal.
Next steps
Capital Structure
DCF
Sensitivity
Professional note
Valuation is a framing tool, not a certified appraisal or brokerage opinion.