Web Analytics
LEVEL II

Capitalization rate

The divisor in the expression for the value of perpetuity. In the context of real estate, the divisor in the direct capitalization method of estimating value. The cap rate equals net operating income divided by value.

Explore KeyPoint Learning

  • Video Lessons
  • Study Notes
  • Practice Quizzes
  • Mock Exams
  • Progress Tracking
Explore CFA Study Packages

Sign Up For Updates

Sign up and be the first to receive updates on upcoming product availability and latest offers.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

By pressing "Submit", you agree to the Terms of Service

Study Materials Flat Lay
Adding to Cart

Preparing your study package access...