capitalized value

capitalized value definition - business

capitalized value

The current value of a future stream of earnings or cash flow. The capitalized value of a rental property is the discounted value of all future cash flows, including rental income, tax benefits, and so forth. The capitalized value of an asset is heavily dependent on the rate at which the projected cash flow stream is discounted.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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