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AccuVal Machinery Index Methodology |
Methodology of Statistical Analysis
In every industry segment measured by AccuVal, data regarding transactions of similar assets is collected on a global basis, organized by their key attributes, and analyzed to identify trends in the marketplace. These transactions are generated by tracking thousands of sales annually which generate hundreds of thousands of transactions. This information becomes part of the world's largest database of transaction information and is analyzed using a proprietary asset management platform called "Asset Intelligence."
To create the trend line, transactions are grouped by asset type. The sales are further consolidated within asset types based on the frequency of occurrence within a range of sales prices. This refined group of more homogenous sales determines the basket of transactions used to define market trends for a specific asset type. These sales are the most common assets in that category and are within the highest frequency of sales prices occurring in the asset class being studied.
These items are further studied and categorized based on their specific attributes. These attributes may include things such as age and other key factors impacting the specification of an asset such as the weight capacity of a lift truck or the tonnage of a stamping press.
These sales are then run through a regression model to normalize the sales price based on age and the other attributes considered in the data set. Regression analysis in its simplest form finds the best fit for the relationship of all of the variables considered. The standard errors of the regression coefficients are used to then normalize the sales prices and account for differences in the variables or specifications of each asset. The normalized sales prices occurring within each quarter are then converted to a quarterly index based on calendar quarters.
Once the normalized sales price is obtained for each calendar quarter, this information is plotted on a graph over time. A three-period moving average is computed from these data points to reduce the impact of variances in the basket of goods sold in each quarter.
Lastly, the data over the last four periods is further analyzed and used to plot the most current trend line. This analysis produces the estimates of the anticipated percentage of change in value for the asset category in the next two periods.
Factors Influencing Value & Marketability
- Age – 5 years or less is best; equipment 10+ years old difficult to sell
- Clamp capacity – Midrange machines 350-ton to 750-ton in greatest demand
- Very large, late model machinery is salable with additional marketing time
Industry Experience
Valuation Monitor
AccuVal routinely provides appraisal, consulting, and asset management services throughout every segment of the Plastics industry. View industries serviced >>Representative Clients Our Associates Have Served
- Collins & Aikman
- Carlisle Engineered Plastics
- Blue Water Automotive Systems, Inc.
Kaysun Corporation
Success Stories
- Disposition Strategy Implemented While Managing Crisis
- Hundreds of Millions in Asset Based Loans Secured for the World's Best Known Plastics Companies
- Successful Crisis Consulting in Bankruptcy Matters
- Maximized Return of Investment in Private and Public Sales of Injection Molding Equipment
- View all Success Stories