Education Series

Valuation Methods

10 lessons covering every major intangible asset valuation method — from RFR and MPEEM to worked examples, reporting context, and method selection. Follow Sterling Brands through a complete Purchase Price Allocation.

The Valuation Journey

From understanding valuation approaches to selecting and applying the right method for each asset class. Each lesson builds on the last, with practical scenarios using Sterling Brands — a £120M consumer goods company undergoing PPA after acquisition — as your worked example.

Attribute Detail
CompanySterling Brands Ltd
Revenue£120M
SectorPremium consumer goods (personal care, household)
Employees400
Brand Portfolio5 trademarks, including flagship "Sterling Premium"
IP Portfolio12 patents covering proprietary formulations
Customer Base2,400 accounts, 92% gross retention
ScenarioPPA following £180M acquisition
Interactive

Method Selector

Which valuation method fits your asset? Answer the questions below to navigate the decision tree and find the recommended approach.

What type of intangible asset are you valuing?

Your Lessons

10 lessons. Scroll to explore, or jump to the topic that matters most to you.

Valuation Methods Overview
1
Foundations

Valuation Methods Overview

An introduction to the three fundamental approaches to intangible asset valuation — income, market, and cost — and the circumstances that favour each.

Income, market, cost approaches, method selection, fair value Start Lesson
Relief from Royalty (RFR) Method
2
Income Approach

Relief from Royalty (RFR) Method

The most widely used income method for valuing brands, trademarks, and technology. How to select royalty rates, project revenue, and calculate the tax amortisation benefit.

Royalty rates, tax amortisation benefit, brand valuation, IP licensing Start Lesson
Multi-Period Excess Earnings (MPEEM) Method
3
Income Approach

Multi-Period Excess Earnings (MPEEM) Method

The standard method for valuing customer relationships in a PPA. How to calculate contributory asset charges, model attrition, and isolate residual earnings.

Contributory asset charges, customer attrition, residual earnings, PPA Start Lesson
With and Without (W&W) Method
4
Income Approach

With and Without (W&W) Method

When an asset creates a holistic competitive advantage that defies royalty-based or excess-earnings analysis. Probability-weighted scenario modelling for unique assets.

Probability weighting, competitive advantage, scenario modelling, strategic assets Start Lesson
Discounted Cash Flow for Intangibles
5
Income Approach

Discounted Cash Flow for Intangibles

Building DCF models for intangible assets — selecting discount rates, estimating useful life, handling terminal value, and applying intangible-specific risk premiums.

Discount rates, WACC, useful life, terminal value, risk premiums Start Lesson
Comparable Transaction Analysis
6
Market Approach

Comparable Transaction Analysis

Using real-world transaction data to benchmark intangible asset values. Royalty rate databases, comparable deal analysis, and the adjustments required for meaningful comparison.

Comparable transactions, royalty databases, market multiples, adjustments Start Lesson
Scenario Analysis and Sensitivity Testing
7
Risk & Testing

Scenario Analysis and Sensitivity Testing

How to test valuation robustness through scenario analysis, sensitivity tables, and Monte Carlo simulation. Identifying the assumptions that drive the most variance.

Sensitivity tables, Monte Carlo, tornado charts, assumption stress-testing Start Lesson
Selecting the Right Method for Your Asset
8
Application

Selecting the Right Method for Your Asset

A practical framework for choosing the optimal valuation method based on asset type, data availability, and purpose — plus how to reconcile results when multiple methods are applied.

Method selection matrix, asset-method mapping, multi-method reconciliation Start Lesson
Applying Methods: Five Worked Examples
9
Application

Applying Methods: Five Worked Examples

Five end-to-end worked examples using Sterling Brands — brand valuation via RFR, customer relationships via MPEEM, patented technology via W&W, assembled workforce via cost approach, and a full WARA reconciliation.

RFR worked example, MPEEM worked example, W&W worked example, cost approach, WARA reconciliation Start Lesson
Valuation in Context: Tax, Accounting, and Financial Reporting
10
Compliance

Valuation in Context: Tax, Accounting, and Financial Reporting

How intangible asset valuations differ across contexts — transfer pricing, impairment testing, litigation, and financial reporting. The disclosure requirements of IFRS 3, IAS 36, and ASC 350.

Transfer pricing, impairment testing, litigation damages, IFRS 3 disclosure, IAS 36, ASC 350 Start Lesson
Scroll to see all 10 lessons →
The Learning Path

From Foundations to Mastery

Each lesson builds on the last — starting with valuation approach fundamentals, through the core income methods, to market analysis, sensitivity testing, and method selection.

Foundations

The three valuation approaches and when to use each

Lessons 1
Income Methods

RFR, MPEEM, With-and-Without, and DCF for intangibles

Lessons 2-5
Market Approach

Comparable transactions, royalty databases, and adjustments

Lessons 6
Risk & Testing

Scenario analysis, sensitivity testing, and Monte Carlo simulation

Lessons 7
Application

Method selection, multi-method reconciliation, and five worked examples

Lessons 8-9
Compliance

Tax, accounting, and financial reporting context for valuations

Lessons 10
Your Progress

Valuation IQ

Complete the quiz at the end of each lesson to track your Valuation IQ. Score 0/40

Lesson 1
Overview
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Lesson 2
RFR
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Lesson 3
MPEEM
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Lesson 4
W&W
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Lesson 5
DCF
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Lesson 6
Market
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Lesson 7
Scenarios
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Lesson 8
Selection
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Lesson 9
Examples
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Lesson 10
Context
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Ready to value your intangible assets?

Use Opagio to apply RFR, MPEEM, and other methods to your own assets — automated, auditable, and aligned with IFRS 13.

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