Market approach method

Group Number: 212032_173Date: 04/04/2024

Mathematical formula CMarket analysis is not limited to a single mathematical formula, as might be the case when using similar market transactions to value an intangible asset or when using comparable frequencies and adjusting them to compensate for any disparities with the asset under consideration. Rather, it is about understanding the fundamental drivers that influence the value of the assets in question. To determine the value of an asset, especially intangible assets, it is essential to consider a range of factors that go beyond a simple equation. These factors may include brand reputation, intellectual property, growth potential, competitive market position and future prospects, among others. By evaluating these value drivers, analysts can gain a more complete and accurate understanding of an asset's true market valuation. This implies a more holistic and multidimensional approach, which goes beyond the mere application of standard mathematical models. Ultimately, this broader perspective allows for more informed and sound financial and business decision-making. So: Value of intangible asset = Price of adjusted comparable transactions

Juan Carlos Triana Ibarra

Market approach method

The market approach method (MAM) is a financial tool for estimating the value of a technology by comparing it with similar technologies that have been commercialized. This method is based on the premise that the value of a technology is related to the price that consumers are willing to pay for it. Related processes: Identification of comparable technologies: Technologies similar to the one you want to evaluate are sought in terms of functionality, development stage and target market. Market data collection: Information is sought on the price of comparable technologies, such as licenses, royalties or sales agreements. Data Analysis: Collected data is analyzed to identify trends and patterns in the pricing of comparable technologies. Calculation of the value of technology: A mathematical formula is used to calculate the value of technology based on the analysis of market data. Formulas:

¿How can companies create value from their innovations? Companies can create value from their innovations in several ways: Commercializing the technology: Companies can sell or license their technology to other companies. Developing technology-based products or services: Companies can use their technology to develop new products or services that they can sell to their customers. Using technology to improve internal efficiency: Companies can use their technology to improve their internal processes and reduce costs. Creating new business opportunities: Companies can use their technology to open new markets or create new business models.