Market capitalization rate

Market capitalization rate

Expected return on a security. The market-consensus estimate of the appropriate discount rate for a firm's cash flow.
References in periodicals archive ?
Appraised value is based on a stabilized net operating income (NOI) divided by a market capitalization rate.
Real market capitalization rate (size proxy) is defined by the growth rate of market capitalization of KSE-100 index at the end of ever fiscal year and real value traded rate (activity proxy) is defined by the growth rate of trading volume of KSE-100 index at the end of ever fiscal year.
4) In the direct capitalization portion, a market capitalization rate is used that is based on the premise (however flawed) that demand was evidenced by recent building activity.
Most studies suggest that the macroeconomic environment has an important effect on the stock market capitalization rate such as gross domestic product, exchange rates, interest rates, current account and money supply (Kurihara, 2006; Ologunde et al.
The sales price represents $154 per square foot with a market capitalization rate of 7.
The failure of financial markets to correctly price the pro rata value of the corporation is shown primarily by the inability of existing models (26) to generate a reliable estimate of the appropriate discount rate or market capitalization rate for equity capital on a continuing basis.
One common mistake that we see," says Monroe, "is when investors and lenders who come into the industry from office or apartment buildings apply a traditional real estate market capitalization rate to nursing homes.
Fitch applied an adjusted market capitalization rate to determine value.
In other words, the chosen market capitalization rate must match the income--and the proportion of income--that is capitalized.
The sales price represents $195 per square foot with a market capitalization rate of 7.
Fitch applied an additional stress to NOI and applied an adjusted market capitalization rate to determine value for both the CTL and conduit loans.
Load the capitalization rate for the equalized ETR; Potential gross Income (PGI) $125,000 Less vacancy and credit loss [at] 10% - $ 12,500 Effective gross Income (EGI) $112,500 Less operating expenses Property tax expense $0 Other operating expense $21,565 Total operating expenses $ 21,565 Adjusted net operating Income (NOI) $ 90,935 Add the equalized ETR to the capitalization rate as follows: Market capitalization rate 0.