Investment Value Calculator
Loan Balance =
Pre-Tax Cash Flow =
Equity Dividend Rate =
Investment Value =
An estimate of the value of income-producing real estate to a particular owner/investor given the investor's desire for a return on equity and the investor's current mortgage position.
- Loan Balance: Current loan balance.
- Pre-Tax Cash Flow: Before Tax Cash Flow.
- Equity Dividend Rate: Required rate of return or equity dividend rate expressed as a percentage. Measures an owner's desired return on equity.
- Investment Value: Investment value.
An investor with a loan balance of $15 million and cash flows of $3 million per year would like to receive a return of 5% on his property investment. What's the investment's value?
- Loan Balance: 15,000,000
- Pre-Tax Cash Flow: 3,000,000
- Equity Dividend Rate: 5.0
It's estimated value is $75,000,000.
Pre-Tax Cash Flow
Equity Dividend Rate