Valuation engine

Value your IP the way valuers do.

Five professional methods, weighted into one figure, then stress-tested with sensitivity analysis and a Monte Carlo simulation. Free, and it runs entirely in your browser.

Step 1

The IP and the business behind it

Use your best estimates. Every method below works from these numbers.

What are you valuing?

Revenue in year 1 from products using the IP

₹

₹1 Cr

Revenue growth — initial period

Initial growth period

yrs

Revenue growth — thereafter

Remaining economic life

yrs

Usually shorter than the remaining legal life.

Operating (EBIT) margin

Discount rate for the IP

See the discount rate build-up for support.

Tax rate

Probability of commercial success

Applied to the income and royalty methods.

Step 2

Choose the valuation methods

Professional valuations cross-check several methods. Turn on the ones you have information for; weights set each method's share of the result.

Relief-from-royaltyValue equals the after-tax royalties the owner avoids paying because it owns the IP, discounted to the valuation date.₹32.31 L

Royalty rate (on revenue)

Support with comparable licences, Georgia-Pacific analysis or the profit-split cross-check.

Royalty rate: 5.00%
Sum of present values: ₹27.17 L
Tax amortisation benefit factor: 1.1890
Indicated value: ₹32.31 L

Profit splitA share of the operating profit earned with the IP is attributed to it (the 25% rule of thumb is a common starting point).

Incremental cash flow (premium profit / cost savings)Extra profit the IP produces — a price premium on revenue and/or cost savings — after tax and discounted.

With-and-withoutProfit the business would lose without the IP while it rebuilds or replaces it, plus the after-tax cost of rebuilding.

Cost approachWhat it would cost today to recreate the IP (reproduction) or an equivalent (replacement), including developer's profit and the opportunity cost of development time, less obsolescence.

Step 3

Test the uncertainty

Each bar shows how far the value moves when one input is 20% lower or higher. The simulation then varies them all at once, 3,000 times, to give a realistic range.

Revenue in year 1 from products using the IP

₹80,00,000 → ₹1,20,00,000

₹25.85 L – ₹38.77 L

Royalty rate (on revenue) (Relief-from-royalty)

4.00% → 6.00%

₹25.85 L – ₹38.77 L

Discount rate for the IP

14.4% → 21.6%

₹28.1 L – ₹37.65 L

Revenue growth — initial period

12.0% → 18.0%

₹30.06 L – ₹34.72 L

Below base case Above base caseLine: base case ₹32.31 L

Monte Carlo simulation

Run the simulation to replace the ±15% range with a P10–P90 range.

Want just a quick range? Try the two-minute estimate. Our valuers use the same engine with 19 methods, benchmarked royalty and deal data, and a second reviewer — see the methodology.

Need a figure you can rely on?

A preliminary report adds verified market data, all relevant methods, documented assumptions and a second valuer's review.

Get a Valuation Try the free estimate

The IP and the business behind it

Use your best estimates. Every method below works from these numbers.

What are you valuing?

Revenue in year 1 from products using the IP

₹

₹1 Cr

Revenue growth — initial period

Initial growth period

yrs

Revenue growth — thereafter

Remaining economic life

yrs

Usually shorter than the remaining legal life.

Operating (EBIT) margin

Discount rate for the IP

See the discount rate build-up for support.

Tax rate

Probability of commercial success

Applied to the income and royalty methods.

Choose the valuation methods

Professional valuations cross-check several methods. Turn on the ones you have information for; weights set each method's share of the result.

Relief-from-royaltyValue equals the after-tax royalties the owner avoids paying because it owns the IP, discounted to the valuation date.₹32.31 L

Royalty rate (on revenue)

Support with comparable licences, Georgia-Pacific analysis or the profit-split cross-check.

Royalty rate: 5.00%
Sum of present values: ₹27.17 L
Tax amortisation benefit factor: 1.1890
Indicated value: ₹32.31 L

Profit splitA share of the operating profit earned with the IP is attributed to it (the 25% rule of thumb is a common starting point).

Incremental cash flow (premium profit / cost savings)Extra profit the IP produces — a price premium on revenue and/or cost savings — after tax and discounted.

With-and-withoutProfit the business would lose without the IP while it rebuilds or replaces it, plus the after-tax cost of rebuilding.

Cost approachWhat it would cost today to recreate the IP (reproduction) or an equivalent (replacement), including developer's profit and the opportunity cost of development time, less obsolescence.

Test the uncertainty

Each bar shows how far the value moves when one input is 20% lower or higher. The simulation then varies them all at once, 3,000 times, to give a realistic range.

Revenue in year 1 from products using the IP

₹80,00,000 → ₹1,20,00,000

₹25.85 L – ₹38.77 L

Royalty rate (on revenue) (Relief-from-royalty)

4.00% → 6.00%

₹25.85 L – ₹38.77 L

Discount rate for the IP

14.4% → 21.6%

₹28.1 L – ₹37.65 L

Revenue growth — initial period

12.0% → 18.0%

₹30.06 L – ₹34.72 L

Below base case Above base caseLine: base case ₹32.31 L

Monte Carlo simulation

Run the simulation to replace the ±15% range with a P10–P90 range.