Survival Curve

Definition

A graphical representation showing the proportion of an asset population that remains in service over time, plotted from 100% at inception to 0% at the end of the longest-surviving unit's life. Survival curves are used in intangible asset valuation to model the expected decay pattern of customer relationships, subscriber bases, and other wasting intangibles. The shape of the curve — whether concave, convex, or S-shaped — significantly affects the present value of expected future cash flows.