Terminal Capitalization Rate
- Terminal Capitalization Rate
- A rate used to estimate the resale value of a property at the end of the holding period. The expected net operating income (NOI) per year is divided by the terminal cap rate (expressed as a percentage) to get the terminal value. Terminal capitalization rates are based on forecasts and estimates and changes based on the person doing the calculation.
When looking at longer periods of time, it is a safe assumption that NOI forecasts will not be completely accurate as estimations become harder over longer periods. Therefore, it may be necessary to include a risk adjustment to the rate.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
Business valuation — is a process and a set of procedures used to estimate the economic value of an owner’s interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive to consummate a sale of a… … Wikipedia
Valuation (finance) — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts … Wikipedia
Hydro-Québec — Type Government owned corporation Industry Electric Utilities Founded … Wikipedia
New York City — This article is about the city. For other uses, see New York City (disambiguation). New York, New York and NYC redirect here. For other uses, see New York, New York (disambiguation) and NYC (disambiguation). New York City … Wikipedia
market — Usually refers to the equity market. The market went down today means that the value of the stock market dropped that day. Bloomberg Financial Dictionary * * * ▪ I. market mar‧ket 1 [ˈmɑːkt ǁ ˈmɑːr ] noun 1. [countable] COMMERCE the activity of… … Financial and business terms
Economy of Indonesia — Jakarta s central business district at Thamrin Street, Central Jakarta. Rank 15th Currency Rupiah (I … Wikipedia
Cost of capital — The cost of capital is a term used in the field of financial investment to refer to the cost of a company s funds (both debt and equity), or, from an investor s point of view the shareholder s required return on a portfolio of all the company s… … Wikipedia
turkey — /terr kee/, n., pl. turkeys, (esp. collectively) turkey. 1. a large, gallinaceous bird of the family Meleagrididae, esp. Meleagris gallopavo, of America, that typically has green, reddish brown, and yellowish brown plumage of a metallic luster… … Universalium
Turkey — /terr kee/, n. a republic in W Asia and SE Europe. 63,528,225; 296,184 sq. mi. (767,120 sq. km). (286,928 sq. mi. (743,145 sq. km) in Asia; 9257 sq. mi. (23,975 sq. km) in Europe). Cap.: Ankara. Cf. Ottoman Empire. * * * Turkey Introduction… … Universalium
Canada — <p></p> <p></p> Introduction ::Canada <p></p> Background: <p></p> A land of vast distances and rich natural resources, Canada became a self governing dominion in 1867 while retaining ties to the… … The World Factbook
