# Natural Cap Rate
Capitalization Rates, or Cap Rates, serve as a fundamental tool in real estate investment for valuation and comparison. Their simplicity and efficiency make them popular for quickly assessing **relational value**. The Natural Cap Rate works the same way as a Cap Rate but instead of focusing just on financial income it incorporates **holistic ecological value**.
## Natural Capitalization Rate
A Natural Capitalization Rate expresses the relationship between the stocks and flows of ecological value. This indicator allows for comparison across polygons and ecosystems based on condition, intervention, and underlying real asset market values.
## Formula
## Use Cases
* compare ecosystem values
* compare polygons
* compare existing conditions to proforma conditions
* compare markets
* prescribe value to a property via cap rate
* calculate uplift and value change
## Relational Value
A Natural Cap Rate is a quick expression of the relational value of natural asset stocks and ecosystem flows. For example, the following can be expressed as:
a) a natural cap rate of 493%
OR
b) using $ values:
**FLOWS:** $1,449,703
**STOCKS:** $294,250
**GAP**: $1,155,453
They both say the same thing about this:
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