Option Trading Course Module 1: What does the 10 Cap valuation is based on and exclude?

Question

What does the 10 Cap valuation is based on and exclude?

David J Perrot · Accepted Answer

1) Based on the business as is ONLY
2) EXCLUDE any special improvements (only normal maintenance)
Note: This is in contrast with Real Estate where property improvements / enhancement will improve the yield. but we do NOT DO that in 10 Cap valuation for business

Option Trading Course Module 1

What does the 10 Cap valuation is based on and exclude?

1) Based on the business as is ONLY 2) EXCLUDE any special improvements (only normal maintenance) Note: This is in contrast with Real Estate where property improvements / enhancement will improve the yield. but we do NOT DO that in 10 Cap valuation for business

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