Income Stream Valuation

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January 1, 1 6 min read Definitions

Yield Capitalization Discounted Cash Flow Real Estate Valuation Income Stream Valuation Direct Capitalization

Yield Capitalization is a method used in real estate to derive the lump sum value of an income stream by a discounted cash flow (DCF) approach. This method is deemed more sophisticated compared to Direct Capitalization as it factors in the timing of cash flows and anticipates growth or decline in the asset value.