As fundamental investors, the art of valuation is our main weapon against the irrationality. In a land-scarce country like Singapore, property holdings are a common and significant source of value, even for companies not in the property business. Today, I would like to share my method of valuing properties. It may not be the most accurate, but as always, the objective here is to broaden perspectives. I categorise property valuation under two categories – Earnings and Asset Value.  Earnings is derived mainly from rental income while Asset Value refers to the fair value of the land and building if it were sold. At a deeper level, the two are actually converge as you can convert earnings into a pseudo-Asset Value using a DCF or rental yield model. Before we jump into the nitty gritty of the two categories, there are a few key terms that you should know when it ......