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Real Estate Glossary

Capitalized Earning Approach

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Written by Luis Escobar

Also known as Capitalization of Earnings, this is a common method of valuing a business based on its future estimated benefits. It normally uses a measure of earnings or cash flow that is generated by the company. Subsequently, the estimated future benefits are capitalized using a capitalization rate.

Also known as Capitalization of Earnings, this is a common method of valuing a business based on its future estimated benefits. It normally uses a measure of earnings or cash flow that is generated by the company. Subsequently, the estimated future benefits are capitalized using a capitalization rate.

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Luis Escobar

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