What valuation methods does Opagio Intangibles support?

Full Explanation

Opagio Intangibles implements seven intangible asset valuation methods spanning the income, market, and cost approaches, each suited to specific asset types and data availability scenarios. In the Asset Valuator, each asset type shows the methods available and marks a recommended one; you choose the method, and can pick a different one if you have a specific analytical requirement.

The Relief from Royalty (RFR) method is the default for brands, trademarks, patents, and licensed technology. It calculates the present value of royalty payments saved by owning the asset, using a royalty rate that you enter, typically supported by a benchmark or a comparable licensing precedent. The Multi-Period Excess Earnings Method (MPEEM) is applied to the primary income-generating intangible asset, most commonly customer relationships. It isolates residual earnings after deducting returns on all other contributing assets.

The With-and-Without method values an asset by comparing projected cash flows with the asset in place versus a hypothetical scenario without it. This is particularly useful for non-compete agreements, favourable contracts, and assembled workforce value.

Two distinct cost-basis methods are supported. The Replacement Cost method estimates what it would cost to recreate an equivalent asset today — components, overheads, and developer's profit, adjusted for obsolescence — suitable for internal software, databases, and assembled workforce. The Cost Approach takes a sum-of-cost basis instead, totalling the actual documented costs incurred to create the asset, less obsolescence, where reliable cost records exist.

The Greenfield method models the time and investment required to build the business from scratch to its current state, useful for distribution networks and regulatory approvals. The Market Approach uses comparable transactions that you enter to derive value, applicable when sufficient market data exists for the asset type.

For each valuation, the page shows the method used and restates your key assumptions in plain language. For Relief from Royalty, MPEEM, Replacement Cost and With-and-Without, a sensitivity table shows how the fair value changes when two key inputs, such as the royalty rate, the discount rate or the attrition rate, move, which supports informed decision-making rather than blind reliance on a single number. Opagio is not a valuer, and its outputs are not a signed valuation or a valuation of record.

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