The Single-Period Valuation Model is one of the income-based business valuation methods which derives the value of a business entity from adjusted income or cash flow from one year. To derive the value of a business entity from this model, the valuer determines the income or cash flow (adjusted as appropriate). The income capitalisation method is the best example of a single-period valuation model where income from the last financial years or an average adjusted income from the last three years is divided by a capitalisation rate to estimate the fair market value of the business entity. This single-period valuation model is most appropriate in situations where the earnings of a business entity are stable and predictable.