# Ertragswertermittlung

## English translation: The capitalized value (is calculated/determined based on)

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
 German term or phrase: Ertragswertermittlung English translation: The capitalized value (is calculated/determined based on) Entered by:

 17:44 Sep 3, 2008
German to English translations [PRO]
Bus/Financial - Real Estate
 German term or phrase: Ertragswertermittlung From an appraisal of the market value of a property: Die Ertragswertermittlung wird auf der Grundlage der nachhaltig erzielbaren nettokaltmiete durchgefuehrt.
 lmulterUnited States Local time: 05:45
 The capitalized value is calculated/determined based on Explanation:I agree with the first answerer, but thought I'd provide a little more information. This is related to the "income capitalization approach" which is a method for determining property value. http://www.allbusiness.com/glossaries/capitalized-value/4960... provides a rather good explanation: "capitalized value the value estimated by converting an income stream into a lump sum amount. Example: A small parking lot generates \$10,000 of income each year. If the appropriate capitalization rate is 8% for this type of property, considering the quality and duration of the expected income, the capitalized value is \$125,000. This is computed by dividing the \$10,000 income stream by 8% (.08)." Further references: http://www.propex.com/C_g_inc.htm "The Income Capitalization Approach ...Income capitalization converts anticipated cash flows into present value by "capitalizing" net operating income by a market derived "capitalization rate"." and http://www.timbertax.org/getstarted/appraisal/methods.asp "Income Capitalization Approach An investor who purchases income-producing real estate is essentially trading present dollars for the expectation of receiving future dollars. The income capitalization approach uses mathematical procedures (discounted cash flow analysis) to analyze a property’s capacity to generate benefits (usually monetary) and convert these benefits into an indication of present value."
Selected response from:

Kaiya J. Diannen
Australia
 Agree4 KudoZ points were awarded for this answer

4 +2The capitalized value is calculated/determined based on
 Kaiya J. Diannen
4determination of the earnings capacity
 Ted Wozniak
3 +1Establishment of the capitalized value
 Jon Fedler
Summary of reference entries provided
 writeaway

4 mins   confidence: peer agreement (net): +1
Establishment of the capitalized value

Explanation:
iMHO

 Jon FedlerLocal time: 15:45Native speaker of: EnglishPRO pts in category: 6

agree
 24 mins

25 mins   confidence: peer agreement (net): +2
The capitalized value is calculated/determined based on

Explanation:

This is related to the "income capitalization approach" which is a method for determining property value.

provides a rather good explanation:

"capitalized value

the value estimated by converting an income stream into a lump sum amount.

Example: A small parking lot generates \$10,000 of income each year. If the appropriate capitalization rate is 8% for this type of property, considering the quality and duration of the expected income, the capitalized value is \$125,000. This is computed by dividing the \$10,000 income stream by 8% (.08)."

Further references:
http://www.propex.com/C_g_inc.htm
"The Income Capitalization Approach
...Income capitalization converts anticipated cash flows into present value by "capitalizing" net operating income by a market derived "capitalization rate"."

and

http://www.timbertax.org/getstarted/appraisal/methods.asp
"Income Capitalization Approach
An investor who purchases income-producing real estate is essentially trading present dollars for the expectation of receiving future dollars. The income capitalization approach uses mathematical procedures (discounted cash flow analysis) to analyze a property’s capacity to generate benefits (usually monetary) and convert these benefits into an indication of present value."

Reference: http://www.timbertax.org/getstarted/appraisal/methods.asp
 Kaiya J. DiannenAustraliaWorks in fieldNative speaker of: EnglishPRO pts in category: 12
 Agree

agree
 2 mins

agree
 12 hrs

27 mins   confidence:
determination of the earnings capacity

Explanation:
which is simply another way of saying "capitalized value". Just thought using earnings capacity might make the concept a bit clearer in your context.

 Ted WozniakUnited StatesLocal time: 07:45Native speaker of: EnglishPRO pts in category: 4

 9 mins
Reference

Reference information:
Foreign Language
Productive value determination is further available in the following languages: German - 'Ertragswertermittlung', Russian - 'определение капитализированных стоимостей потенциальных доходов', Spanish - 'Búsqueda del valor de las ganancias obtenidas', Chinese - '产值确定', french - 'Calcul du bénéfice', italian - 'Determinazione del valore della produzione', portuguese - 'Determinação de lucros capitalizados',
http://www.industrystock.com/html/Productive value determina...

 writeawayWorks in fieldNative speaker of: EnglishPRO pts in category: 12

Peer comments on this reference comment (and responses from the reference poster)
neutral  Steffen Walter: For "Ertragswert", "capitalised (income) value" is used much more commonly than "productive value" in property/real estate. / Yes, looks like the odds are against your proposal ;-)
 13 hrs
-> that's why it's posted just as a reference, not an answer/proposed translation. the specialists (one of which I am not) can take it or leave it. Looks like 'leave it' is the better option, n'est-ce pas? ;-)

 Sep 13, 2008 - Changes made by Kaiya J. Diannen: Created KOG entry KudoZ term » KOG term Sep 4, 2008 - Changes made by Steffen Walter: Field (specific) Finance (general) » Real Estate Sep 3, 2008: Kudoz queue In queue » Public

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