Computational Methods For Real Estate Holdings And Developments
Formal models are receiving increasing attention for their ability to more accurately predict outcomes than humans without working them out. A growing number of investors hence use mathematical models to invest smarter by automating research and identifying risks. This includes the Real Estate Holdings companies as well as Development companies. The computational models excel at predicting risks and consequently help investors make informed decisions. Mitigating and managing risks allows investors to stay ahead of market dynamics not only by winning bigger and more often, but also by losing less often. The other purpose of computational methods is finding aberrations which the models can identify from stocks that trade at lower valuation multiples; and stress testing and discounted cash flows (DCF) which reduce the anticipated net income for the decreasing value of money over time and risk associated with a particular venture. These methods include: Monte Carlo Simulations, Black-Scholes method and Hedonic Regression.