Automated Asset Valuation System for Complex Financial Data
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Solution Overview
Problem
The conventional discounted cash flow (DCF) method for evaluating business units is cumbersome and impractical due to the large amount of data involved, making it difficult for humans to manually process and interpret, especially when dealing with complex financial data such as real estate valuations.
Innovation Solution
A computerized method that extracts and processes past and future data from databases, automatically determining and displaying a single estimate value for business units, allowing for efficient evaluation and comparison by simplifying the complex data into manageable parameters.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a conventional discounted cash flow (DCF) method is used for evaluating business units, then the evaluation can be performed using established financial principles, but the large amount of data involved makes it cumbersome and impractical for manual processing
Solution Approach 1:
The patent replaces manual mechanical processing of financial data with automated computer-based systems. The computer automatically extracts data from databases, performs DCF calculations, and generates valuation results, eliminating the need for manual handling of large datasets while maintaining evaluation accuracy.
Solution Approach 2:
The system enables self-service valuation by automatically performing all DCF calculation steps without requiring manual intervention. The computerized method autonomously retrieves historical data, forecasts future cash flows, applies discount rates, and produces valuation results, allowing users to obtain evaluations simply by initiating the automated process.
2Loss of information
If detailed financial data is processed manually, then comprehensive analysis can be performed, but it becomes impossible to achieve for large data sets
Solution Approach 1:
The patent replaces manual data processing with automated computer systems that can handle large datasets efficiently. The computer automatically extracts comprehensive financial data from databases, performs calculations on complete datasets without human intervention, and maintains data integrity throughout the process, achieving both completeness and productivity.
Solution Approach 2:
The patent segments the valuation process into distinct automated steps: data extraction from databases, cash flow forecasting, discount rate application, and result generation. This segmentation allows the computer system to process comprehensive data systematically through multiple automated stages, maintaining completeness while achieving high processing capability.
3Loss of information
If multiple parameters are calculated for business unit evaluation, then more comprehensive valuation information is obtained, but it becomes difficult for humans to interpret and compare
Solution Approach 1:
The patent extracts and presents only the most essential valuation results from the comprehensive DCF analysis. The computerized method calculates multiple parameters internally but extracts and displays key metrics such as net present value and internal rate of return, making the information comprehensible and comparable while retaining the benefits of comprehensive analysis.
Solution Approach 2:
The patent transforms complex valuation parameters into simplified, standardized output formats that are easy to interpret. The computer system converts detailed financial models into standardized metrics with clear meanings, enabling straightforward comparison across different business units while preserving the comprehensive valuation information through systematic parameter transformation.
Data Source
AI summary
The disclosed embodiments are directed to a system, non-transitory computer readable medium and method of determining a value of an asset and presenting a visualization of the determined asset value The exemplary system and method use past data and future plan data related to the asset that is processed by a computer to determine the asset value. Different valuation processes may be used to determine the asset value. The resulting valuations may be presented to a user for comparison purposes.