The Capitalisation Method of business valuation is one of the methods under the income approach. Under this method, business valuation analysts review and compute the most recent economic benefits (earnings) for a representative single-period which is converted to fair market value through division by an appropriate capitalisation rate. 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. The computation of the capitalisation rate per the Ibbotson Build-Up Method is as follows: