Residual Value

Definition

The estimated value of an asset at the end of its useful life or the end of a forecast period. In intangible asset valuation, residual value considerations are important for assets with finite lives, such as patents approaching expiration, as well as for terminal value calculations in discounted cash flow models.

Related Terms

Real Options Analysis Recurring Revenue Regulatory Capital Relational Capital Relief-from-Royalty Method

Put this knowledge to work

Use Opagio's free tools to measure and grow the intangible assets that drive your business value.