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Valuation of Communities

Posted: Mon Jun 09, 2003 2:08 pm
by Dan Murphy
Hello,

My wife and I are shareholders in a privately held company that consists of 26 manufactured housing communities. The company's name is Jensen's Inc. Jensen's Inc. have fairly nice communities relative to the industry. What is the best way or ways to value Jensen's Inc. as a whole company and as a going concern? Would one just look at past and future earnings to determine a value or should one also consider the value of the land? If there are any other resources to help answer this question, please let me know.

Thanks,

Dan Murphy

Re: Valuation of Communities

Posted: Tue Jun 10, 2003 6:15 am
by Roy Bonney
The quick rule of thumb, is site valuation. This is similar to an income valuation, in that an amount per spot is accessed, as compared to the annual rent. If the monthly rent is $100.00 x 12 = 1200.00 x 20%return = 6000.00 per spot.