Income approaches are methods used to determine the value of an asset, such as a business or investment property, by analyzing the income generated by that asset. This approach is commonly used in business valuation and real estate appraisal to calculate the present value of future income streams. The main income approaches include the discounted cash flow method, capitalization of earnings method, and direct capitalization method. These methods help investors and analysts assess the potential return on investment and make informed decisions about buying, selling, or holding an asset.
