Capitalization of Earnings Method

The Capitalization of Earnings Method is applicable when:

bAn income approach has been determined to be the appropriate course of valuation; and

bThe business's earnings or cash flow growth rate is expected to be stable from the date of valuation onward.

Folder and Worksheets

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

bAssumptions

bBenefit Stream

bCapitalization Rate

bIndicated Value

bRate Sensitivity