This dissertation is a comprehensive study on the economic aspect of the oil palm industry in West Malaysia with the objective of formulating a suitable valuation methodology. The study is basically divided into two parts. The first part concentrates on the economic aspects of the industry. Chapter 1.00 is mainly introductionary but provides, a general background to the understanding of the later chapters. Chapter 2.00 deals mainly with the botanical aspect of the oil palm trees. The purpose of this chapter is to understand the success of the oil palm industry in Malaysia. It also explores into the varieties available, climate and soil suitable for oil palm cultivation, diseases and pests attacks and their remedies. In Chapter 3.00 we trace the development of the oil palm industry from its introduction in Malaysia up to present times. We examine critically the quantitative and qualitative role of the industry in the context of the Malaysian economy. Chapter 4.00 looks at the world supply situation of palm oil and closely competing oils and fats. We also examine the marketing strategy to dispose of Malaysian Palm Oil at profitable levels. The second part basically gears towards the valuation aspect and finally the valuation example. Chapter 5.00 examine critically the yield, price and revenue. It also shows in detail how the price of fresh fruit bunch (f.f.b.) is arrived at, for the purpose of those estates without processing facilities. Chapter 6.00 analyse the various costs involved in the running of an oil palm estate. It shows a detail breakdown of the cost invovled and try to give a figure for each, based on current general values. Chapter 7.00 is the valuation example based on the Discounted Cash Flow Technique. It embraces all calculations derived from chapters 5.00 and 6.00. Its objective is to derived at the net yearly revenues which are discounted to get the present value of the estate concern. Chapter 8.00 deal with the views and conclusion of the discounted Cash Flow Technique used in the valuation of oil palm estates.