Lakhasly

1.More specifically, the method first calculates the business value based on the cash flows from various assets used for the business, then deducts from the business value the value of the financial assets (i.e. monetary assets) and tangible assets (e.g. land, buildings, equipment) that are irrelevant to the technology, and finally calculates the value of the intangible assets.The value of the technology asset is included in the value of the intangible assets.This is the procedure of the Asset Deduction Method.

1. Asset Deduction Method (Deducted Enterprise Value Method)
   The Asset Deduction Method first calculates the value of a business as a whole that is operated by
   using a technology or other intellectual property (i.e. business value) and then extracts the part
   corresponding to the contribution of the technology. More specifically, the method first calculates the
   business value based on the cash flows from various assets used for the business, then deducts from the
   business value the value of the financial assets (i.e. monetary assets) and tangible assets (e.g. land,
   buildings, equipment) that are irrelevant to the technology, and finally calculates the value of the
   intangible assets. The value of the technology asset is included in the value of the intangible assets. The
   method then estimates the weight of the technology accounted for in the intangible asset value, and
   multiplies the intangible asset value by the resultant weight to obtain the v
   alue of the technology. This
   is the procedure of the Asset Deduction Method.
   The formula for calculating the value of a technology by the Asset Deduction Method is expressed
   as follows: