Capitalization Rate
Capitalization Rate definition :
A discount rate that is used to count the present value of all future income. It is calculated by dividing earnings after taxes by the present value.
Capitalization rate
Capitalization rate is a measurement of annual yield used for property and other capital assets. The capitalization rate is equal to income after taxes, divided by estimated value.
National Rates ...
Capitalization rate or Cap rate, is a divisor used to convert a single-point business economic benefit into the business value. The typical economic benefit used in small business valuation is the seller's discretionary cash flow.
capitalization rate
rate of interest or discount rate used to convert a series of future payments into a single present value . In real estate, the rate includes annual capital recovery in addition to interest.
Dictionary of Real Estate Terms ...
CAPITALIZATION RATE (CAP RATE)
The INTEREST RATE that would be used to convert a series of future payments into a single PRESENT VALUE.
FREIGHT FORWARDER ...
Market capitalization rate
Definition: [crh] Expected return on a security. The market-consensus estimate of the appropriate discount rate forDefinition: a firm's cash flow.
CAPITALIZATION RATE - also known as CAP RATE, is the rate of return a property will produce on the owne...
CAPITALIZATION RATIO - Measurement of the company's debt component of the company's capitalization. Mea...
overall capitalization rate - Related Articles
How to Set the Hurdle Rate for Capital Investments
Best Practice ...
Capitalization Rate - A method used to estimate the value of a property based on the rate of return on investment.
Cash Advance - Cash drawn from the available credit on a credit card account.
Capitalization Rate. A discount rate used to find the present value of a series of future cash receipts. Sometimes called discount rate.
Capitalization rate - The rate of return a property will produce on the owner's investment. The formula is expressed as: annual net operating income / cost (or value) = Capitalization Rate ...
Capitalization Rate
The rate of interest used to calculate the present value of a number of future payments.
Capitalization Ratios ...
Capitalization Rate: Capitalization rate is the rate of interest that is considered a reasonable return on the investment used in capitalization net income to determine the value of the property.
Capitalization Rate
Rate of interest used to convert a series of future payments into a single present value.
Cash Cow ...
Capitalization Rate
An estimated percentage rate of return that a property will produce on the owner's investment.
Capitalization Rate
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 investor's potential return on his or her investment.
If capitalization rates are increasing and net operating incomes are decreasing over time in a specific market area, then property values will decline.
Market capitalization rate
The market capitalization rate is the rate of discount which investors apply to future cash flows when establishing the current market price for a security.
Overall Capitalization Rate
Related answers:
What are the differences between accounting rate of return and internal rate of return? Read answer...
Market capitalization rate Expected return on a security. The market-consensus estimate of the appropriate discount rate for a firm's cash flows. Market clearing Total demand for loans by borrowers equals total supply of loans from lenders.
The total dollar value of all outstanding shares. Computed as shares times current market price. Capitalization is a measure of corporate size.
Market capitalization rate ...
capitalization rate A rate of interest or discount rate used to convert a series of future earnings... capitalization ratios The distribution of a company's assets between debt, preferred stock, common...
Theoretically, in valuations of growing firms driven off of multiples (or capitalization rates), ...
The interest rate used in discounting future cash flows; also called the "capitalization rate."
Distributions and withdrawals: ...
discount rate
The interest rate used in discounting future cash flows; also called the "capitalization rate." ...
If one year's net income is estimated then that income is capitalized via a market-derived capitalization rate to provide an indication of the FMV of the subject property.
Typical issues addressed in an administrative review include: How comparable are the comparable properties used in the appraisal? How reasonable are income and expense projections? Is the capitalization rate appropriate? See technical review.
 See also: Expected return, Banks, Bills, Capital structure, Market portfolio
  
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