multi-period excess earnings method (MPEE)
The multi-period excess earnings (MPEE) method is a financial valuation model often used in valuing customer-related intangible assets that estimates revenues and cash flows derived from the intangible asset and then deducts portions of the cash flow that can be attributed to supporting assets, such as a brand name or fixed assets, that contributed to the generation of the cash flows.
multi-period excess earnings method (MPEE)
The multi-period excess earnings (MPEE) method is a financial valuation model often used in valuing customer-related intangible assets that estimates revenues and cash flows derived from the intangible asset and then deducts portions of the cash flow that can be attributed to supporting assets, such as a brand name or fixed assets, that contributed to the generation of the cash flows.
Additional Information
The resulting cash flow, which is attributable solely to the subject intangible asset, is then discounted at a rate of return commensurate with the risk of the asset to calculate a present value.
Synonyms
supporting asset charges
