In business valuation analysis, Capitalisation denotes the process of converting a single-period economic benefits into fair market value. The process involves the application of a capitalisation rate to convert an adjusted income amount to fair market value. The capitalisation rate is the multiple or divisor used to convert anticipated economic benefits (adjusted income) of a single-period into fair market value and typically contains all risk elements. The Capitalisation Method is also referred to as the capitalisation of earnings method or the income capitalisation method.