capitalization rate

the rate at which a company’s reserves are converted into capital by way of a stock split

The ultimate business dictionary. 2015.

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  • Capitalization rate — (or cap rate ) is a measure of the ratio between the net operating income produced by an asset (usually real estate) and its capital cost (the original price paid to buy the asset) or alternatively its current market value. The rate is calculated …   Wikipedia

  • Capitalization Rate — A rate of return on a real estate investment property based on the expected income that the property will generate. Capitalization rate is used to estimate the investor s potential return on his or her investment. This is done by dividing the… …   Investment dictionary

  • capitalization rate — The interest rate used to calculate the present value of a number of future payments. Bloomberg Financial Dictionary * * * capitalization rate capitalization rate ➔ rate1 * * * capitalization rate UK US (UK also capitalisation rate) noun [C]… …   Financial and business terms

  • capitalization rate — n. Cap Rate, interest rate for calculating the present value; method for converting an estimate of income expectancy of one a single year into an indication of value in one direct step by dividing the income estimate by a proper rate …   English contemporary dictionary

  • earnings capitalization rate — UK US noun [C] STOCK MARKET ► EARNINGS CAPITALIZATION RATIO(Cf. ↑earnings capitalization ratio) …   Financial and business terms

  • 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… …   Investment dictionary

  • Market capitalization rate — Expected return on a security. The market consensus estimate of the appropriate discount rate for a firm s cash flows. The New York Times Financial Glossary …   Financial and business terms

  • market capitalization rate — expected return on a security. The market consensus estimate of the appropriate discount rate for a firm s cash flow. Bloomberg Financial Dictionary …   Financial and business terms

  • overall capitalization rate — Fin net operating income other than debt service divided by value …   The ultimate business dictionary

  • Capitalization Of Earnings — A method of determining the value of an organization by calculating the net present value (NPV) of expected future profits or cash flows. The capitalization of earnings estimate is done by taking the entity s future earnings and… …   Investment dictionary

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