Business Valuation and Transfer Pricing. 
Database and Tools.

The market risk premium (MRP) is a central component of company valuation and plays a significant role in the capital asset pricing model (CAPM). It measures the additional return investors expect for assuming market risk compared to risk-free investments. One way to calculate the market risk premium is to employ the dividend discount model (DDM), also known as the Gordon growth model. This is one of the implicit methods for determining the MRP. Unlike historical methods, which evaluate past return data, the model estimates the market return by discounting future dividends.

Brands are among the most valuable assets of many companies. The value of the Apple brand alone exceeded the trillion-dollar mark in 2024, highlighting the significance of intangible asset valuation in business valuations and purchase price allocation. Various methods play a role here, including the relief-from-royalty method. The relief-from-royalty method provides a structured approach to valuing intangible assets, enhancing transparency in accounting. We will outline the basic concept, explain the necessary steps for implementation, and assess its suitability for application under IFRS and tax law.