Putting a price on or determining the value of something can be complex. This is particularly so when the items are intangible, such as intellectual property rights. Economics can guide businesses and governments on how to value or assess a wide range of assets and liabilities.
Have you listened to music in a gym lately? What value does it add to your workout? How much should TV networks pay for the right to broadcast musical works? Determining the value in areas like intellectual property requires assessing the relevance of alternative comparators, estimating the value generated by a right and modelling the outcomes of a hypothetical bargain. In other areas, it may be more tangible benefits being valued, such as the health benefits accruing to a community from certain types of urban infrastructure, or the valuation of assets or stock options.
Frontier Economics has advised on these and many other valuation challenges for clients. Our work is based on strong economic theory and empirical evidence, including econometric modelling.
Our Valuation work includes:
- valuing rights such as intellectual property or mining rights, land or physical assets, intangible assets and share options and rights
- assessment of damages and liabilities
- pricing business and financial risks
- transfer pricing
Some of our work
A dispute between the Australian Performing Right Association (APRA) and Free TV over the fees that free-to-air TV networks pay for the right to broadcast musical works went to arbitration. Frontier Economics gave an opinion during the arbitration on whether the fee proposed by APRA was reasonable.