Hi Trevor, good question. The capitalization rate is used when you think a company's earnings will stabilize and not significantly grow abymore. This can be any value you want but it'll most likely be less than your predicted growth rate. This website does a far better job at explaining it than I can. https://www.lotusamity.com/business-valuation/process/what-is-difference-between-capitalisation-rate-and-discount-rate/