Income Approach

The Income Approach is a method used to estimate the value of an investment, property, or business based on its expected future income. Instead of looking at the asset itself, it focuses on the cash flow it generates. This approach calculates the present value of future income streams, often considering factors like rental income, operating expenses, and market rates. It's commonly used in real estate and business valuations to determine how much an investor might be willing to pay based on the profits they expect to receive over time.