Valuation Tools

The three main approaches are:

1. Cost Based Approach

The cost approach measures the values of the intangible assets by assessing the expenditures necessary to replace the assets. The cost approach is based on the economic concept of substitution, that is, people will pay no more for an asset than it would cost to develop or obtain another asset with similar functionality. Cost items that should be included when valuing the assets include the legal costs, registrations costs, personnel costs, development costs, production costs and marketing and advertising costs.

2. Market Based Approach

Intangible assets are valued by comparing recent sales or similar transactions with similar assets involved in similar markets. This method is applicable when similar markets and similar transactions exist; however, more than often, comparable assets can’t be found due to the uniqueness of most intangibles which limits the application of this method.

3. Income Based Approach

The income approach measures the value of an intangible asset based on the future income streams that are expected to be generated by the asset.

Some income approach methods:

  1. Relief from royalty method
  2. Multi Period Excess Earnings method
  3. Incremental cash flow method

Business Valuation Tool

IP Valuation Tool

Super IP-Calculator

This tool enables you to do a rudimentary
business valuation.
All major items are incorporated in this setup.
Default values are shown in 'grey'.

This tool enables you to do a rudimentary
IP valuation (patents, trademarks)
using the relief from royalty method.
Default values are shown in 'grey'.

This tool allows to assess
internationally used multiples
in order to get a first indication
of a company's value in a particular
industry and country.




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