Fe de Erratas – Analysis and Valuation of Consorcio Ara 2.0

Important corrections and improvements made to my recent valuation of Consorcio Ara

Dear readers, 

I would like to inform you about some important corrections and improvements made to my recent valuation of Consorcio Ara.

1. Correction in the Book Value of Real Estate Inventory

In my original valuation, I incorrectly reported the book value of real estate inventory. Real estate inventory is the sum of short-term inventory and land used in projects. The figures displayed for these accounts were as of Q2 2024. However, the consolidated real estate inventory figure mistakenly reflected Q1 2024 values. This discrepancy occurred because I updated my valuation shortly after the company announced Q2 2024 results but forgot to update the consolidated real estate inventory figure. The corrected book value now accurately represents the Q2 2024 data.

2. Correction in the Calculation of Value Destruction per Cycle

Initially, I calculated the value destruction per cycle using the future value of real estate inventory ($12,987.53 million) instead of the correct initial inventory value of $12,242 million. 

3. Correction in the Cumulative Present Value of Value Destruction in 10 Years

I made an error in calculating the “Cumulative Present Value of Value Destruction in 10 Years” by counting the value destruction of the first cycle twice. This overestimated the value destruction, leading to an incorrect value of real estate inventory. The calculation in my analysis now properly accounts for each cycle only once, providing a more precise valuation.

I have made these corrections in my valuation report to reflect the accurate financial position and value of Consorcio Ara.

Thank you for your understanding and continued support.

Best, Ferrucho