What Are Intangible Assets?

Intangible Assets are those assets held by a company that are not physical (an example of a physical asset would be a factory, computers etc). Despite not being physical and therefore not easily traded, Intangible Assets must be included when assessing the value of a company as they add value. For example, a lot of Apple's value comes from its patents and copyrights on products such as the iPhone and iPad so Apple would have a relatively large amount of Intangible Assets. Intangible Assets usually have a certain expiry point (as opposed to Goodwill assets which are indefinite). Some examples of Intangible Assets are:

  • Trademarks
  • Patents
  • Contracts

Intangible Assets are found on the Balance Sheet, whilst Amortization of Intangibles is found on the Income Statement and Cash Flow Statement.

To learn more about this concept and become a master at valuation modeling, you should check out our Valuation Modeling Course. Learn more here.

Module 1: Introduction

Module 2: Valuation: The Big Picture

Module 3: Enterprise Value & Equity Value Practice

Module 4: Trading Comparables Introduction

Module 5: Trading Comps: The Setup

Module 6: Trading Comps: Spreading Nike (NKE)

Module 7: Trading Comps: Spreading Adidas (ADS.DE)

Module 8: Trading Comps: Spreading Lululemon (LULU)

Module 9: Trading Comps: Spreading Under Armour (UA)

Module 10: Trading Comps: Benchmarking and Outputs

Module 11: Precedent Transactions: Introduction

Module 12: Precedents: The Setup

Module 13: Spreading Tiffany & LVMH

Module 14: Spreading FitBit & Google

Module 15: Spreading Reebok & Adidas

Module 16: Spreading Jimmy Choo & Michael Kors

Module 17: Spreading Dickies & VF

Module 18: Valuation Wrap-Up

Module 19: Bonus: Non-GAAP Practice

Learn More Here

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