Cost-to-Recreate (CTR)

Definition

A valuation method for stranded knowledge assets based on the documented cost of producing the knowledge from scratch, adjusted for inflation and technological change. The most conservative and defensible of the four VUC methods.

Formula

Example

A failed clinical trial that cost $12M to conduct. CTR values the underlying data at the adjusted reproduction cost, regardless of the trial's commercial outcome.

Source

VUC Section 3.1