Intangible Asset Valuation: A Comprehensive Guide¶

Name: Intangible Asset Valuation
Author: Ascent Partners

Intangible Asset Valuation

A Comprehensive Guide to Valuing Brands, IP, Technology, and Human Capital

Theory, Methods, Regulation, and Practice

Valuation in Practice Series by Ascent Partners

By Simon Mak

The definitive textbook for finance professionals, valuation analysts, accountants, and students navigating the complexities of intangible asset valuation. Covers all three valuation approaches, 19 chapters of frameworks for patents, trademarks, brands, technology, customer relationships, goodwill, purchase price allocation, and impairment testing — with step-by-step methodologies aligned to ASC 805, IFRS 3, ASC 350, and IAS 36.

19 chapters · 3 appendices · 124+ functions · 698 tests · 54 MCP tools · 3 AI-Agent Skills

Buy on Amazon

Companion Library¶

This site is the companion documentation for the Python library implementing 124+ functions from the Intangible Asset Valuation textbook.

Quick Start¶

pip install intangible-valuation

from intangible_valuation.core.time_value import present_value
from intangible_valuation.income_methods.relief_from_royalty import relief_from_royalty

# Present Value
result = present_value(future_value=500_000, discount_rate=0.10, periods=8)
print(f"PV: ${result.value:,.2f}")  # $233,253.69

# Relief from Royalty — Patent Valuation
value = relief_from_royalty(
    revenue_projections=[1_000_000, 1_100_000, 1_200_000, 1_300_000, 1_400_000],
    royalty_rate=0.05,
    discount_rate=0.12,
    tax_rate=0.25,
    useful_life=5,
)
print(f"Patent value: ${value.value:,.2f}")

Book Chapters → Library Modules¶

Chapter	Topic	Library Module
1	Introduction to Intangible Assets	—
2	Core Mathematics	`core.time_value`, `core.discount_rate`, `core.statistics`
3	Valuation Approaches	`approaches.cost`, `approaches.market`
4	Income Methods	`income_methods.relief_from_royalty`, `income_methods.mpeem`, `income_methods.incremental_cash_flow`
5	Intellectual Property	`asset_types.patent`, `asset_types.trademark`, `asset_types.copyright`, `asset_types.trade_secret`
6	Royalty Analysis	`advanced.royalty`
7	Technology Assets	`asset_types.technology`, `asset_types.software`, `asset_types.data`, `asset_types.platform`
8	Customer-Related Intangibles	`asset_types.customer_relationship`, `asset_types.distribution_network`, `asset_types.non_compete`
9	Human Capital	`asset_types.assembled_workforce`, `asset_types.key_person`
10	Goodwill & PPA	`advanced.goodwill`, `advanced.purchase_price_alloc`
11	Impairment Testing	`advanced.impairment`
12–14	Advanced Topics	`advanced.monte_carlo`, `advanced.decision_tree`, `advanced.litigation`, `advanced.transfer_pricing`
15–19	Specialized & International	See textbook

Features¶

124+ valuation functions across all three approaches covering every methodology in the textbook
Typed Python API with structured ValuationResult returns (value + assumptions + step-by-step calculation)
MCP Server exposing 54 valuation tools for AI agents (Claude, OpenCode, etc.)
AI-Agent Skills with workflow guidance for asset valuation, discount rate construction, and PPA
698 tests — every function verified against textbook example values

Modules¶

Module	Methods	Chapter
`core.time_value`	PV, FV, annuity, perpetuity, growing annuity, terminal value	2
`core.discount_rate`	Build-up, CAPM, WACC, TAB, control premium, DLOM, currency adjustment	2
`core.statistics`	Monte Carlo, decision trees, regression	2
`approaches.cost`	Reproduction cost, replacement cost	3
`approaches.market`	Comparable transactions, royalty capitalization	3
`income_methods.relief_from_royalty`	RFR with TAB	4
`income_methods.mpeem`	Multi-period excess earnings with CACs	4
`income_methods.incremental_cash_flow`	With vs. without asset comparison	4
`asset_types.*`	IP, brand, technology, customer, human capital	5–9
`advanced.royalty`	Benchmarking, 25% rule, adjustment	6
`advanced.goodwill`	Goodwill calculation, PPA waterfall	10
`advanced.impairment`	Goodwill & intangible impairment (ASC 350 / IAS 36)	11
`advanced.monte_carlo`	Simulation, sensitivity analysis	15
`advanced.decision_tree`	Backward induction	16
`advanced.litigation`	Lost profits, pre-judgment interest	17
`advanced.transfer_pricing`	CUP method, OECD guidelines	18

MCP Server¶

pip install intangible-valuation[mcp]
intangible-valuation-mcp

Connect with any MCP-compatible AI agent. All 54 valuation tools are available.

AI-Agent Skills¶

Copy the skills/ directory to your agent's skills folder. Available skills: - asset-valuation — Patents, trademarks, technology, customer relationships, human capital - discount-rate-construction — Build-up, CAPM, WACC, risk premiums, adjustments - purchase-price-allocation — Full PPA workflow, goodwill calculation, impairment testing

Development¶

pip install -e ".[dev]"
pytest --cov=src --cov-report=term-missing
ruff check .

License¶

MIT