Valuation is based on the relation between demand and supply as a basic principle. It had been explained in simpler terms by the great Indian Guru and thinker, CHANAKYA long ago, that Value is a measure of yield. This can be elaborated by observing that desire creates demand and demand defines the value resting on the probable yield for that demand. For the plants elements are valuable, for animals, plants and elements are valuable and for human beings plants, animals and elements are valuable. This natural value chain block explains the concept of value and valuation.
Valuation, thus, finds expression in this natural value block chain. But, Valuation gains more prominence in the man and man made value block chain as man entered the technological arena. Rapidly changing technologies to the extent of Artificial Intelligence leads further to new expression in the form of intangible Valuation.
Valuation, as a profession being required in every walk of life, is fast emerging to acquire a status as a main stream profession. Thanks to the attention of authorities and stake holders, who are beginning to take note of the importance this profession carries in playing a vital role in impacting financial and economic condition of the nation.
Valuation is said to be a work of Science and Art. Differing from the regime of cost and price, Value is concerned with more than that. Valuation considers the sellers, buyers, retrospective and prospective effects of selling and buying and thus scientific base is used to craft the value with an artistic view, based on individual perceptions. Taking a perspective and futuristic view, Valuation can go to an extent of hypothecation, where possibilities for the business ventures in shifting to new areas become a possibility. Taking cognizance of the intangibility, created due to undefined aspects, provides the tangible in achieving the required totality and reality. Virtuality in the absence of any authentic comparable can be brought to reality by comprehensive use of logics and application of standards. Then, the
absence of real comparable gives way to adoption of other available options in exercising the Valuation process.
Conclusively, it can be inferred that Valuation as a profession, acquires a predominant place amongst professional services. But here it becomes important to note that it is just not about acquiring required qualification to become a valuer ,but having field experience with guarded ethical and moral values coupled with the continuing exposure to professional educational programmes are essentially to be possessed for the proficiency required in professional disposition.