Capitalization of Excess Earnings Method

Please Note: The Capitalization of Excess Earnings Method is not displayed when the Value Calculation assumption is set to Enterprise Value.

The Capitalization of Excess Earnings Method is the most widely used valuation technique for small business assignments. It is also extensively used when valuing professional practices. It is one of the few methods that separately values tangible assets and intangible assets.

Folder and Worksheets

The worksheets for the Capitalization of Excess Earnings Method are in the Appraisal \ Income Approach \ Capitalization of Excess Earnings folder.

bAssumptions

bBenefit Stream

bNormal Return

bCapitalization Rate

bIndicated Value

bRate Sensitivity