Platform · Glossary
Goal-convergent price.
The purchase price supported by a stated investor goal under the current assumptions.
Goal-convergent valuation is the method. The goal-convergent price is the result. PriceDNA reports that result as the PriceDNA Estimate™.
When goal-convergent valuation is applied to a specific property and a specific goal — such as cash-on-cash return, DSCR, or cash velocity — the resulting goal-convergent price is the purchase price those numbers can support under the current assumptions.
A third lens beside comparative and capitalization
Goal-convergent valuation is a new way of thinking about valuation: instead of asking “what is this property worth in the market?”, PriceDNA asks what value is supportable for a particular investor goal and assumptions.
It can be understood alongside two common valuation lenses:
| Method | Starting point | Main question |
|---|---|---|
| Comparative valuation | Market transactions | What does market evidence support? |
| Capitalization valuation | Property income | What value does the income appear to support? |
| Goal-convergent valuation | Investor goal and deal assumptions | What price supports my goal? |
The first two lenses help describe what outside market evidence or a property’s income may support. Goal-convergent valuation answers a different question: what purchase price does the investor’s selected goal support under the assumptions being modeled?
Forward valuation vs. reverse valuation
Many property-analysis tools work forward: input a price, then calculate a yield, cash flow figure, or other return metric.
Goal-convergent valuation works in reverse: start with the selected goal and solve for the purchase price supported by that goal under the current assumptions.
The reasoning starts where the investor’s decision criteria live — with the goal — and solves for the price where the property’s modeled income, expenses, financing, assumptions, and selected goal converge.
Why the inversion matters
Starting with the goal makes the relationship between the asking price and the investor’s own numbers explicit.
If the asking price is above the goal-convergent price, the investor can see the gap and examine what would have to change — such as financing, operating assumptions, the selected goal, or the asking price — for the numbers to converge.
The goal-convergent price is not a promise, prediction, appraisal, or estimate of market value. It is the purchase price supported by the selected goal under the assumptions used.