The Impact Of Cap Rates On Property Valuation
Authors: Ngu Kanti Hedris, Atanga Desmond Funwie. Paper Title:
The Impact Of Cap Rates On Property Valuation.
IQ Research Journal of IQ res. j. (2023)2(9): pp 01-06. Vol. 002, Issue 09 09-2023, pp.0610-0616
Here, we have several objectives. The first one is to understand how cap rates and net
operating income impact the valuation of the property. To do this, we’re going to build
an example analysis. Tests of several alternative investments, and then we’ll be able to
compare them and perform sensitivity analysis to see a range of values for each of these properties. Finally, we’ll be able to make an assessment based on that analysis if we think they’re overvalued, undervalued, or potentially good or bad investments