Calculator · Intangible assets

Brand valuation calculator

Value a brand by relief-from-royalty or by the with-and-without (excess margin) method, with a finite or indefinite life, the tax amortisation benefit and a transfer-pricing view of the royalty.

How the brand valuation works

Relief-from-royalty values the brand as the present value of the royalties the owner avoids by owning it, with low, mid and high royalty rates giving a range (IVS 210 paras 60.18 to 60.21). The with-and-without method values the business with its own margins and again with the margins of a generic competitor, and takes the difference (paras 60.22 to 60.23). Either can be the primary method, with the other as a cross-check.

For market value or fair value the cash flows are after tax and the tax amortisation benefit can be added (paras 110.01 to 110.04). For transfer pricing the page works pre-tax at pre-tax rates and compares the royalty with the profit differential and the licensee's margin after royalty.

Related: MPEEM calculator · Royalty rates in practice · Purchase price allocation · Model notes

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