Asset Valuation Using Comparable Objects and Analogous Data
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Solution Overview
Problem
Valuing large assets with multiple unique objects is challenging due to the lack of direct comparisons on the market, as traditional methods rely heavily on specialists and online tools that often overlook intangible attributes and may not reflect the true market value, especially for assets with non-identical components or intangible qualities.
Innovation Solution
A method that generates comparable objects from specification data by defining attributes and applying comparison weights to retrieve analogous object data, allowing for a dynamic and influenced valuation that considers both tangible and intangible characteristics, enabling users to adjust the importance of attribute categories for accurate and customizable valuations.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If traditional valuation methods using specialists and online tools are used, then valuation can be obtained quickly, but the valuation may not reflect true market value and overlooks intangible attributes
Solution Approach 1:
The patent segments the valuation process into distinct components: generating comparable objects from specification data, identifying analogous objects from market data, and calculating valuation based on multiple attributes. This segmentation allows each component to be optimized independently, improving overall valuation accuracy while managing complexity through modular processing.
Solution Approach 2:
The patent transitions from traditional single-dimension valuation (price-based) to multi-dimensional valuation by incorporating numerous attributes including intangible characteristics. This dimensional expansion enables capturing true market value by considering factors beyond simple price comparisons, such as asset specifications, market conditions, and qualitative attributes.
2Ease of operation
If direct market comparisons are used for large assets, then valuation is simplified, but direct comparisons are often unavailable due to unique characteristics of each asset
Solution Approach 1:
The patent introduces comparable objects as intermediaries between the target asset and direct market comparisons. These comparable objects are generated from specification data and serve as mediators to bridge the gap when direct comparisons are unavailable, enabling valuation through analogous rather than identical matches.
Solution Approach 2:
The patent applies parameter changes by adjusting and weighting multiple attributes of comparable and analogous objects to account for differences between assets. This allows the system to handle unique characteristics of each asset while maintaining comparability through normalized parameter adjustments and weighted scoring.
3Measurement precision
If multiple attributes and comparison weights are considered, then valuation accuracy improves, but the complexity of data processing and analysis increases
Solution Approach 1:
The patent performs preliminary actions by pre-generating comparable objects from specification data and pre-identifying relevant attributes and their weights before the actual valuation process. This preliminary preparation reduces processing time during valuation by having comparable objects and weighting schemes ready in advance, rather than computing everything from scratch each time.
Data Source
AI summary
A method includes determining a comparative valuation for an asset including one or more objects. Specification data for the asset is retrieved, and comparable objects including two or more attributes are generated. Each attribute includes an attribute category and an associated attribute value. Comparison weights are received for attribute categories, and analogous object data is retrieved for analogous objects that are each analogous to the comparable object. The analogous object data includes attributes that are each analogous to one of the attributes of the comparable object. Each analogous attribute includes a category, a value, and a valuation. A comparative valuation for the object is output based on the associated attribute values for the comparable object, the associated analogous attribute values for each analogous object, the valuation of each analogous object, and the comparison weights. The comparative valuation for the asset is output based on the comparative valuations for each object.