WCAP - Wise Capital Asset Pricing

3 Replies

So here me out here. Everyone knows about (CAPM), the Capital Asset Pricing Model, from basic finance. Basically the model used for calculating expected return on a real estate property or other financial assets. But what about WCAP - wise capital asset pricing. Why just calculate a return on anything, why not look for wiser investments using more qualitative measures and then pricing it with multiples or premiums based on non-quant measures. I think there's too much focus on quantifying everything but it can't really be drilled down to that in REI because it's much more personal.

Not sure I follow on the WCAP terminology but I think you raise some valid points. When it comes to negotiating and coming up with a bid/ask price there's more to consider than just the so-called "comparables". It really comes from your experience in the industry and the intangibles that become part of it.

I was under the impression that WCAP usually refers to Wealth Capital Accumulation and Preservation, which is still finance related. Unfortunately it doesn't relate to the Wise Capital Asset Pricing you have referred to. 

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