What is the difference between CAP rate and EBITDA MULTIPLE in real estate investment?

The CAP rate (Capitalization Rate) is a metric used to assess the return on an investment property by comparing its net operating income (NOI) to its purchase price or current market value, expressed as a percentage. In contrast, the EBITDA multiple evaluates a property's value based on its earnings before interest, taxes, depreciation, and amortization (EBITDA), typically used in valuing businesses and investments that generate cash flow. While CAP rate focuses on income relative to property value, the EBITDA multiple encompasses a broader view of cash flow and profitability, considering operational efficiency and potential growth. Both metrics provide insights but serve different purposes in investment analysis.