Discount rate vs cap rate
2 Jun 2014 This document provides an in-depth look of the capitalization rate, or cap rate, metric commonly used in real estate. CAP RATE VS. DISCOUNT RATE Ploutus Advisors, LLC 2 ¡ Cap Rate is related to a Discount Rate Definition: Capitalization rate, commonly known as cap rate, is a rate that helps in evaluating a real estate investment. Cap rate = Net operating income / Current