Einkommensansatz

Einkommensansatz, or income-based approach, is a valuation method that determines the value of an asset by deriving it from its expected future income streams. It represents one major family of valuation methods in German-speaking practice, typically contrasted with asset-based (Sachwert) and market-based (Vergleichs- or Verkehrswert) approaches. In many real estate and corporate valuations the term is closely associated with the Ertragswertverfahren, where value is generated from future earnings.

The method rests on projecting future cash flows or earnings and converting them into present value. Key elements include the forecast horizon, expected cash flows, and the discount rate or capitalization rate used to translate those cash flows into a lump-sum value. Risk adjustments, vacancies, maintenance costs, taxes, financing considerations, and operating assumptions all influence the outcome. In real estate, stabilized income can be capitalized at a rate to yield value, while longer-term cash flows may be discounted using a discount rate.

Applications are common in real estate appraisal, corporate valuations, and feasibility studies where income potential is central. It is also used in financial reporting and tax assessments to reflect profitability prospects rather than current physical assets alone.

Limitations include sensitivity to forecast quality and chosen rates; small changes in projected income or discount rates can cause large swings in value. The reliability of the Einkommensansatz rests on credible market data, robust cash-flow modeling, and transparent risk adjustment. See also Ertragswertverfahren, Sachwertverfahren, Discounted cash flow.