Sensitivity Analysis

A valuation and risk assessment technique that evaluates potential outcomes by modelling different sets of assumptions about key variables such as growth rates, margins, and discount rates. Scenario analysis is essential for intangible asset valuation because the future cash flows attributable to intangible assets are inherently uncertain.

The valuation of a company's existing order book or contracted but undelivered revenue at the measurement date. Backlog is recognised as a contract-based intangible asset under IFRS 3 and ASC 805 when it arises from contractual or legal rights.

An assessment of the sustainability, predictability, and growth trajectory of a company's revenue streams, examining factors such as the proportion of recurring versus one-time revenue, customer concentration, contract duration and renewal rates, pricing power, and the distinction between organic and acquisition-driven growth. Revenue quality analysis is a core component of financial due diligence in M&A transactions and directly impacts the selection of appropriate valuation multiples.

A method of segmenting customers into groups based on shared characteristics or time of acquisition, then tracking their behaviour and value over time. Cohort analysis is essential for understanding customer lifetime value trends, retention dynamics, and the true unit economics of growth-stage businesses.

A productivity measurement technique that compares a firm's or sector's performance against the theoretical maximum output achievable with given inputs. Frontier analysis methods, including data envelopment analysis and stochastic frontier analysis, reveal inefficiencies and quantify the productivity gap attributable to underinvestment in intangible assets.

A valuation methodology that estimates a company's value by comparing it to similar publicly traded companies using financial ratios such as EV/Revenue or EV/EBITDA. Comps provide a market-based reference point but may undervalue intangible-heavy businesses if peers are not well matched.

A valuation methodology that estimates a company's value by analysing the prices paid in comparable M&A transactions. Precedent transactions incorporate control premiums and strategic value that may not be captured in public market comparables.

A legal assessment that determines whether a product, process, or technology can be commercialised without infringing the intellectual property rights of third parties. FTO analysis involves searching and reviewing granted patents and pending applications in relevant jurisdictions to identify potential infringement risks.

How accurate are Opagio's royalty rate benchmarks?

Opagio uses published benchmarks (Royalty Stat, industry reports) but notes that rates vary by deal, company size, and negotiation — benchmarks are guidance, not gospel.

What if I disagree with Opagio's valuation?

Opagio valuations are transparent — you can see all assumptions and adjust them. If you disagree with a specific input (royalty rate, discount rate, useful life), change it and re-run.

Can I export my Opagio valuation for use in external documents?

Yes — Opagio generates downloadable PDF and Excel reports suitable for sharing with investors, advisors, and auditors, maintaining formatting and methodology disclosure.