The lower the cap rate, the more an investor has paid for a future stream of earnings.
The problem lies in the uncertainty surrounding both its components: the future stream of dividends and the appropriate discount rate.
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The value of any such asset (real estate, stock share, or bond) is the sum of the future stream of cash flow or benefits, discounted by the interest rate.
Hire a property manager or do it yourself to create a future income stream for retirement.
All told, the next few days and weeks will go a long ways in determining the future earnings stream for Mr. Favre.
Instead the government is set to fix the future price of new nuclear electricity, to give investors the certainty of a future income stream.
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Such efficiency can only be realized if planners can receive -- and bank on -- a reliable projection of the Defense Department's future spending stream.
Ultimately it is the general account of the insurance company that is guaranteeing the retirement savers future income stream in the event the retirement savers portfolio value cannot support the generation of the guaranteed income stream.
Yes, looking at hard assets and debts in this manner is useful: but we do have to then go on to the next stage which is to point out that by their taxing powers governments have a future revenue stream.
First, by the corporate income tax, then again by the individual income tax through the tax on dividends, then if you sell the capital investment, through the capital gains tax (which taxes the increase in the present value of the future income stream to the investment, which will be taxed again when earned), then when you die, by the death tax.
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Furthermore, these new razors don't require, or even permit, a stream of future blade purchases.
When we purchase a stock, we are buying a stream of future cash flows.
In the long-term, however, market valuations should reflect the fundamentals of discounting a stream of future cash flows.
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The SNP has said it would like to see an oil fund set up in the event of independence to provide a revenue stream for future generations of Scots.
It calculates an intrinsic value by discounting a stream of future earnings back to the present, using a discount rate that is a function of both Aaa bond yields and the creditworthiness of the target company.
By giving away its site's traffic in exchange for more video views, Google is likely betting on the future of "in-stream" advertising--video ad clips or pictorial ads overlaid on videos--rather than the display ads or text ads that typically appear on Google's sites.
Here is a better way to value stocks: First, the investor should weigh the cost of capital against the firm's stream of current and future free cash flows to determine the asset's value.
"On top of that there is a 5% tidal stream figure, and with future technological development that is likely to be an underestimate in my view, " he said.
Because, at the end of the day, search is all the constant revenue stream you need to bankroll all future projects.
Phooey, says Mr Sirower, who notes that when executives play the acquisition game, they pay, in addition to the current market price, an up-front premium for a stream of payoffs sometime in the future.
But in the future, we expect to make three times that, a significant revenue stream.
There is certainly a new mood of optimism amongst the record labels and the report looks to an even brighter future where we all keep our legally obtained music in the cloud and stream it to our cars, our phones or our TVs, wherever we go.
On future albums Katsiris says he and Budrik plan to let the composers and performers share a royalty stream of 50% of wholesale revenue.
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