1. The discount rate used to determine the present value of a stream of future earnings. Typically this will be an appropriate risk-free return plus a premium to reflect the risk of that specific investment.
2. In real estate, the rate of return on a property.
Related information about cap 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) ...
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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 Definition | Investopedia
Now the cap rate is a less favorable 125,000/2 million = 6.25%. This is because Stephane could potentially sell the property for $2 million and use that money for ...
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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 ...
- Calculating a CAP Rate for Commercial Real Estate Financing
Direct Capitalization (CAP) is a method used to convert a property's annual income, into an estimate of the property's value.
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Article on the Capitalization Rate, also known as the Cap Rate including formula and use. What is a cap rate? What is a market capitalization rate and how is it ...
- PECO - An Exelon Company | CAP Rate
CAP Rate is a discounted residential tariff rate for low-income customers within the PECO service territory. There are seven discounted rates (up to 90 percent ...
- What Is Cap Rate? - YouTube
Mar 13, 2009 ... If you are a real estate investor just getting started, you have probably heard of cap rate, and maybe even read the formula for cap rate or the ...