What is the term for expressing potential income as current value?

The term for expressing potential income as current value is capitalization. This process involves calculating the present value of expected future income streams generated by a property or investment. Essentially, it converts future earnings potential into a present value figure, allowing for better assessment and comparison of different investment opportunities.

Capitalization is a fundamental concept in finance and real estate, as it considers the income approach to value by applying a capitalization rate to projected income. This technique helps appraisers, investors, and analysts determine how much a property or investment is worth today based on its ability to generate revenue over time.

Other terms in the list refer to different concepts: depreciation relates to the reduction in value of an asset over time; appreciation refers to the increase in value; and investment analysis encompasses various methods used to evaluate the viability and performance of investments, but it does not specifically denote the transformation of potential income into current value as capitalization does.