Valuation of land: from the discounted cash flow to the real options

The author examines the practical issues of valuation of land plots with real options methodology in the light of the traditional balance of methods and intended use. Adapts Black-Shoulz model to assess the value of land in the purposes and offers practical guidance on the calculation of the model elements. The proposed approach can also be used to assess the rights to the conclusion about the development of built-up area of the contract, other similar rights arising from the provisions of Articles 46.4-46.6 of the Town Planning Code of the Russian Federation.