Data valuation is the process of estimating the potential market value of a financial data asset or intangible asset liability.
Valuations can be done on assets (for example, investments in marketable securities such as stocks, options, business enterprises, or intangible assets such as patents and trademarks or on liabilities (e.g., Bonds issued by a company).
Valuations are required in many contexts including investment analysis, capital budgeting, merger and acquisition transactions, financial reporting, taxable events to determine the proper tax liability, and in litigation.
CloudCover valuation models will be used to value intangible assets such as electronic data, copyrights, software, trade secrets, and customer relationships. Since few sales of benchmark intangible assets can ever be observed, one often values these sorts of assets using either a 'present value model' or estimating the costs to recreate it.
Stock markets indirectly estimate a corporation's intangible asset value. It can be reckoned as the difference between its market capitalisation and its book value (by including only hard assets). Regardless of the method, the valuation process is often time consuming and costly.
Data valuation of electronic intangible assets are now more necessary than ever, due to the demand for online business continuity, real-time financial processing and reporting, just in-time manufacturing incorporating global brand (intellectual property) transactions.
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