Abstract
In this presentation, I discuss the development of more relevant valuation method for intellectual properties by illustrating an actual case of the licensing. Based on the model licensing case, at the first setout, I estimate the value of those properties by using the traditional DCF (Discounted Cash Flow) method.
Second, I introduce the method of scenario analysis and Monte Carlo simulation into the projection of future cash flows to obtain more accurate valuation. Third, I attempt to investigate analysis of the real option value that incorporates the potential values of additionally contracted matters. Further, I show that each valuation method can derive different royalty rates with respect to the evaluated intellectual property.
