How a Superyate is Valued: Comparison Methods, Cost and Income

1. The Complexity of Value a Unique Active

Valuing a superyat is not comparable to value a property or a stock market action. Each vessel is a unique, highly personalized asset, subject to non-linear depreciation and fluctuations in an opaque and global market. An error in valuation may result in an overstatement of risk for a bank, an inadequate insurance policy (underinsurance) or a disastrous investment decision for a Family Office.

In Prop Trust Verified, we clearly distinguish between two concepts that are often confused:

• Market Value: The estimated price at which the asset would switch hands between a buyer and a seller informed in a distance transaction (arm’s length transaction).
• Agreed Value (Agreed Value): The contractually fixed value in a “Hull & Machinery” insurance policy. This value is usually higher than that of the market to cover the replacement cost in case of total constructive loss (CTL).

2. The Three Methods of Valuation Accepted Internationally

To issue an expert report with legal and financial validity, we rigorously apply the three methods recognized by the International Valuation Standards Council (IVSC) and adapted to the marine sector:

A. Market Comparison Method (Market Approach)

It is the most used method for yachts in production. We analyze a global database of recent sales of comparable vessels (comps), adjusting the base price for critical variables:

• Slora and Year of Construction: Standard depreciation adjustment.
• Shipyard (Builder): A Feadship or Lürssen retains the value much better than a serial production yard.
• Refits and Updates: Review of technical and aesthetic improvements made.
• Condition and Maintenance: Negative adjustment for lack of service history or unrepaired damage.

B. Costume Method (Cost Approach)

Used mainly for custom boats, prototypes or very old where there are no comparable market. Calculates the cost of building an identical asset today (Replacement Cost New), less the accumulated physical, functional and economic depreciation.

• Physical depreciation: You wear normal for use and aging.
• Functional depreciation: Obsolescence of systems (e.g. motors that do not comply with IMO Tier III regulations, outdated layouts).

C. Income Approach

Litig for yachts operating commercially on charter. It values the asset based on its ability to generate future cash flows. A capitalization rate (Cap Rate) is applied to net operating income (NOI), taking into account historical occupation, market rates and operating costs (OPEX).

3. Factors that Increase or Destroy Value

Beyond numbers, the luxury nautical market is emotional and recurrent. Factors that an expert report should ponder:

• The “Factor Shipyard”: The “Big Three” (Feadship, Lürssen, Benetti) and boutique shipyards (Vitters, Royal Huisman) have flat depreciation curves. Missing shipyards or with poor quality reputation destroy the resale value.
• Design (Exterior and Interior): A timeless design (e.g. Terence Disdale, Nuvolari Lenard) protects the value. An interior too personalized or “fashioned” in the construction year may require a costly refit for the next owner.
• Documented Maintenance History: A yacht with an impeccable “logbook”, shipyard bills and classification certificates a day can be worth between 10% and 15% more than an identical one without papers.

4. When and Why You Need a Professional Rating

A review report by Prop Trust Verified, legalized with Apostilla de The Hague, is required or highly recommended in the following situations:

• Banking financing: Private banks (UBS, Credit Suisse, Bank of America) require a conservative LTV (Loan-to-Value), usually between 50% and 70% of the value of taxation.
• Insurance policies: To avoid the “Average” clause (co-insurance) in case of partial sinister, or to ensure fair compensation in the case of Loss Total.
• Patrimonial and Fiscal Planning: Inheritance divisions, asset inputs to companies (holding companies), or heritage declarations in specific jurisdictions.
• M fakeA or Sales Transactions: Check out price (asking price) or validation of a purchase offer.

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