THE ROLE OF INTANGIBLE ASSETS IN DETERMINING BUSINESS VALUE

Abstract

This article investigates the strategic role and significance of intangible assets in shaping corporate market value within the context of contemporary digital transformation and the knowledge economy. It analyzes the inherent limitations of conventional accounting systems in capturing the true economic worth of enterprises, which often leads to a substantial discrepancy between book value and market capitalization (market-to-book premium). Through a comparative analysis, advanced international valuation methodologies for intangibles—such as the relief-from-royalty method, multi-period excess earnings method (MEEM), and real options analysis—are examined. The findings demonstrate that the synergy between intellectual property, brand equity, and human capital acts as a critical multiplier determining long-term competitive advantage and corporate goodwill. Finally, within the framework of Uzbekistan’s transition to International Financial Reporting Standards (IFRS) and large-scale privatization of state assets, this paper formulates scientifically grounded recommendations aimed at improving the methodology for capitalizing intangible assets on corporate balance sheets at fair market value.