Article is simply wrong in several places.  This writer has had over 40 years in the appraisal and valuation business and has written three books on valuation.  Have neither the time nor the interest in rewriting the article.  But, as a single example, there are three, and only three, ways to value any asset.  While they have slightly different names one classification would be:  

 1. Cost Approach - what comparable assets would cost to acquire, adjusting the subject asset for depreciation from all causes (not accounting depreciation) but functional, physical and economic depreciation 

 2. Market Comparable Approach which looks at what comparable assets are actually selling for in the market place, it being necessary to adjust the subject asset, or the comparable assets, for unique aspects. 

 3. Income or Discounted Cash Flow ("DCF") Approach which looks at the projected income or cash flow stream and then discounts it back to today's Present Value using a discount rate that properly adjusts for the specific risk characteristics of the subject asset. 

 Wherever possible a valuation specialist will try to use two, or in some cases all three, ot these Approaches.  Everything mentioned in the article is simply an application of one of these three Approaches 

 alfredking@erols.com