Of comparable companies that do not own the brand. , this approach is rarely practical. Royalty Relief Method in Brand Valuation In the royalty relief method, the valuation of cash flows is based on the present value of hypothetical license payments. These expected future royalties are calculated on the assumption that the company does not own the brand. The licensing rates required for this were derived from the licensing agreements of comparable brands and adjusted to be exactly in line with the brands being evaluated. The commonalities of these brand valuation methods all use the company’s (weighted average cost of capital.
Since this assumption is unrealistic
Capitalization rate to calculate the discounted Australia Phone Number List future cash flows, thereby incorporating in the calculation risks that have not been accounted for life. In addition, when determining cash flows, it must be ensur that an economically reasonable long-term expected growth rate is use beyond a well-defin planning period. Furthermore, according to standard , the useful life of the brand must be estimat because possible cash flows beyond the useful life may not be includin the brand valuation. When estimating the service life, trends in the respective industry must also be taken into account. All cash flows must also be calculat after taxes, taking into account tax benefits associated with depreciation. If these tax benefits are related, they.
In future cash flows or useful
Must be calculated and accounted for USA Person separately., it must be clear that the brand value includes tax advantages. Download List Market Price-Based Procedures In market price-based procedures, brands are valued on the basis of market prices paid for comparable transactions during the relevant time period. Possible synergies and strategic value when selling the brand should be considered here. Market prices at comparable stores must also be revised using a multiplier to account for potential differences between brands. Comparable brands are those that have similar brand strength and comparable merchandise, as well as similar.
