Valuation methods commonly used to assign value to intangible assets are based on the market itself and valuation requires a measure of economic value.

Income Methodology:

The revenue-based model is best used when the intangible asset generates revenue or allows the asset to generate cash flows, the earnings, like other valuation allocations, focus on future earnings from the technology transition.

Multiples Methodology:

The process is the following:

1) Quote multiples based on Net revenues – Top Line. Ex: (EV / Revenues)x 

2) Quote multiples based on Operating Profits with and without D&A (EBITDA and EBIT) – Middle Line. Ex: (EV / Ebitda)x & (EV / Ebit)x 

3) Price multiples based on Net Profits and Net Income per share (Bottom Line) Ex: PER (price earning ratio) Price to Sales x

Cost Methodology:

Cost-based analysis is based on alternative economic principles and generally ignores the magnitude, timing, and duration of future economic benefits, as well as the risks of operating under competitive conditions. Initial costs represent only the actual costs incurred to develop the asset. New copy price means the current price of the same property new. New replacement cost means the current cost of a similar new property. A new copy price is the current price of the same property new. New replacement value is the current price of a similar new property that has the most similar appraised value. In most cases, new replacement cost is the simplest and most meaningful cost-based approach to asset value. Different types of obsolescence, such as functional, technical, and financial, must be taken into account when estimating new replacement costs.