The Valuation Process

 

 

At the core of it's valuation process, the Technology Resource of the Southeast, Inc. uses the Black-Scholes mathematical formula.

Black-Scholes formula

The Black-Scholes mathematical formula was awarded the Nobel Prize in Economics in 1997. The formula has been adapted to assess the underlying value of technology assets by discounting functions such as time to market, cost to commercialization, cost of development and estimated useful life of the technology or time to expiration of core or central Patents.

The Black-Scholes mathematical formula was awarded the Nobel Prize in Economics in 1997. The formula has been adapted to assess the underlying value of technology assets by discounting functions such as time to market, cost to commercialization, cost of development and estimated useful life of the technology or time to expiration of core or central Patents.

 

The methodology uses live market data of similar or comparable technologies as proxies in the calculations. The Black-Scholes model is used by the leading technology companies as a means of efficiently and accurately valuing their inventory of Intellectual Property.

 

Furthermore, the Black-Scholes methodology of assessing technology valuations is recognized by leading experts around the world as well as major accounting firms. In fact, Black-Scholes is the preferred method of valuation when a high degree of uncertainty or risk is present.

 

We further validate our findings through our triangulation process. Our method provides two additional sets of calculations to reach a valuation conclusion. If all the additional analysis methods confirm the valuation calculation then we are fully confident in the accuracy of our results. Furthermore, in a full valuation analysis, the financial analysis is only one of three aspects to our in-depth report. Included in our assessment is a full technical analysis, full market analysis as well as a comprehensive financial analysis.

 

Technology Value Black-Scholes Formula

 

 


The Technology Resource of the Southeast, Inc.
715 West Locust Street
Johnson City, TN 37604
(423) 929-0380


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