What methodology does the Opagio Calculator use?
Short Answer
The Opagio Calculator uses a multi-factor model that combines financial metrics, industry benchmarks, and the CHS intangible asset framework to estimate total intangible asset value as a proportion of enterprise value.
Full Explanation
The Opagio Calculator is designed for quick, indicative intangible asset valuations based on readily available inputs. The methodology combines three layers. First, financial fundamentals: revenue, growth rate, margins, and R&D spend provide the quantitative base. These are compared against industry-specific benchmarks to determine whether the company is investing above or below sector norms in intangible asset creation. Second, the CHS framework: the calculator maps the company's investments across the three Corrado-Hulten-Sichel classes (computerised information, innovative property and economic competencies) and the asset types within them to estimate intangible investment intensity. Third, market multiples: industry-specific revenue and earnings multiples are applied, adjusted for the company's intangible asset intensity score, to estimate total enterprise value and the intangible asset component. The output shows estimated total intangible asset value, a breakdown by CHS category, and a comparison to industry peers. The Calculator is intentionally simpler than the Asset Valuator in Opagio Intangibles — it is designed for founders, advisers, and investors who need a quick directional estimate rather than a formal valuation. For detailed asset-by-asset valuations using specific methods (RFR, MPEEM, Cost Approach), users should use the Asset Valuator in Opagio Intangibles.
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