With-and-Without Method

Definition

A valuation technique that estimates the value of an intangible asset by comparing the projected cash flows of a business with the asset to those without it. The difference in present value represents the asset's contribution and is commonly used to value non-compete agreements, assembled workforces, and technology assets.

Related Terms

Waterfall Distribution Weighted Average Cost of Capital (WACC) Premium Weighted Average Remaining Useful Life (WARUL) Workforce Analytics Working Capital

Related FAQ

What is the With-and-Without method for valuing intangible assets?

The With-and-Without method values an intangible asset by comparing the enterprise value with the asset versus without it, isolating the asset's contribution.

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