Why is my Capitalization Rate a multiple and not a percentage?
When using the ValuSource software, there are assumptions that need to be set correctly to have items appear correctly later in the analysis. Some users get to the Cap rate portion of the analysis only to find its is showing a multiple. There is a simple fix for this issue. In the project assumptions, you need to change from Enterprise to Equity Value Calculation.
Usually this gets changed on accident however if you plan on doing an enterprise value calculation, with our software you will not be able to use a percentage-based Cap rate.
Once you change the Value Calculation your analysis should once again show a Percentage-based Cap rate.
If you need any further assistance please contact us at 800-825-8763 or email email@example.com.