Market Value Evaluation Methods for Immaterial Assets

Summary

Source: Evaluation et valorisation des actifs immateriels ouverts. Inno3, 2017, Table p.10

• Historical cost method: evaluated cost of making/producing the resource

• Renewal cost method: how much would it cost to reproduce the asset today, 'ex nihilo'

• Transactional method: evaluation derived from recent market transactions that concerned the resource

• Net expected returns: evaluating the resource based on revenue expectations

The last method is the most popular with consulting firms; the third method is considered unreliable, the first two methods are the easiest to undertake. (from the report's conclusions)