Write down the three approaches to valuation. Is it mandatory for the valuer to consider all three approaches ? Which approach a valuer should choose ?

Answer 3(b) There are three approaches to valuation, i.e., asset approach, market approach and income approach. It is mandatory for the valuer to consider all three approaches. However, it is not mandatory for the valuer to apply all three approaches. The choice of approach or weightage to results arrived at by each of the approach is subject to valuer's judgment. The valuer must apply judgment in a rationale manner and disclose his rationale in the valuation report.