Income-Based Valuation is a method used to determine the value of an asset, typically a business or property, based on its expected future income. This approach estimates the present value of future cash flows generated by the asset, discounting them back to their current worth. It is commonly used in real estate and investment analysis. This valuation method relies on the principle that an asset is worth what it can earn over time. Factors such as market conditions, operating expenses, and risk are considered to provide a more accurate assessment of the asset's value.