Asset Valuation

Asset Valuation of Used Recycling Machinery

Asset valuation plays a critical role in the used recycling machinery market, helping determine fair market value for buying, selling, insurance coverage, financing, and asset management. With growing global emphasis on sustainability and the circular economy, demand for used recycling equipment—such as shredders, crushers, screens, and sorters—is rising, making accurate valuation more important than ever.

Key factors influencing value include:

• Machine age and total operating hours
• Maintenance history and availability of service records
• Brand reputation and model reliability
• Market demand for specific machinery types
• Upgrades, refurbishments, or integration of modern features

Trusted manufacturers like Arjes, Bandit, and Hammel often retain stronger resale value due to their durability and consistent performance.

Valuation methods typically fall into three categories:

• Market Comparison – based on recent sales of similar equipment
• Cost Approach – replacement cost minus depreciation
• Income Approach – estimated future revenue the machine could generate

A thorough condition assessment is also essential. This involves:

• Physical inspection and performance testing
• Evaluation of wear levels and operational readiness

Benefits of accurate asset valuation include:

• Smarter fleet decisions and investment planning
• Enhanced transparency during transactions and negotiations
• Better financial reporting and more effective asset recovery

As the market for used recycling equipment continues to grow, reliable valuations will remain a vital tool for maximizing return on investment and ensuring sustainable business operations.