The discount rate used to determine the present value of a stream of future earnings. Equals normalized earnings after taxes divided by present value, expressed as a percentage.
Related information about capitalization rate:
- Capitalization rate - Wikipedia, the free encyclopedia
Capitalization rate (or "cap rate") is the ratio between the net operating income produced by an asset and its capital cost (the original price paid to buy the asset) ...
- Capitalization Rate Definition | Investopedia
A rate of return on a real estate investment property based on the expected income that the property will generate. Capitalization rate is used to estimate the ...
- How to Calculate Capitalization Rate - Real Estate Capitalization ...
To calculate capitaliztion rate (cap rate) for an income property that sold recently, you would divide the net operating income by the sold price to determine the ...
- Cap Rate Formula | What's Your Property Worth?
Cap rate: How do you know what an income property is worth? Capitalization rate is one of the most misused concepts in commercial real estate investing.
- Capitalization rate - Financial Dictionary - The Free Dictionary
Also found in: Wikipedia, 0.01 sec. Capitalization rate. The interest rate used to calculate the present value of a number of future payments. Capitalization Rate ...
- Capitalization Rate (Cap Rate) Definition
Real Estate: Capitalization Rate Cap Rate - Definition.
- Using the Capitalization Rate to Determine the Value of Real Estate ...
Real estate investors, real estate appraisers and commercial real estate lenders use capitalization rates (cap rates) to determine the value of commercial real ...
- Calculating a CAP Rate for Commercial Real Estate Financing
The Direct Capitalization Rate (CAP Rate) is defined as follows: Value = Net Operating Income ... Net Operating Income = Overall Capitalization Rate X Value ...