Economic Benefits, under business valuation, refer to inflows such as revenues, net income, and net cash flows which accrue to a business enterprise or an asset. Such benefits form the basis of business valuation through the application of a capitalisation rate (to income) or a discount rate (to cash flow) depending on the valuation method applied. If the business valuator focuses on income as the economic benefit, the most recent adjusted income is converted to fair market value by applying a capitalisation rate. However, should the business valuator rely on cash flows as the economic benefits, future cash flows are converted to fair market value by applying a discount rate which is the Weighted Average Cost of Capital (WACC).