Value a data asset by the present worth of its future sales — what it will fetch, how often, and when.
Stack the premiums an investor would demand for holding this asset. The sum flows into the discount rate above.
| Component | Rate (%) | Typical range |
|---|---|---|
| Risk-free rate10-yr Treasury yield | 3.5 – 5.0% | |
| Equity risk premiumreturn over risk-free for equity | 4.5 – 6.0% | |
| Illiquidity premiumthin resale market for data | 3 – 6% | |
| Asset-specific riskdemand, exclusivity, buyer uncertainty | 3 – 10% | |
| Obsolescence riskdata decay, leakage, tech change | 2 – 5% | |
| Implied discount rate | 17.50% |
A typical specialized data asset lands in the 15–30% range — well above corporate WACC because cash flows are uncertain, the resale market is thin, and the underlying data depreciates.
| When | Sale price | № sales | Present value |
|---|
Each row is a future sale, or a batch of identical sales. Discounting is continuous in the chosen unit at the annual rate above.
Without a buyback, future sales are split between the seller and Petrarch. By purchasing the seller's share today — at a discount to its market value — Petrarch consolidates the stream and books the discount as profit.
| Seller | Petrarch | |
|---|---|---|
| No buyback PV of each party's share of future sales | $0.00 | $0.00 |
| With buyback Seller is paid the buyback price today; Petrarch then owns 100% | $0.00 | $0.00 |
| Δ from buyback Change in PV for each party | $0.00 | $0.00 |
| Buyback price paid today | $0.00 | |
Buyback price = Seller's PV × (1 − discount). Petrarch's profit from the buyback equals the discount applied to the seller's stream — the seller trades future cash flows for certainty and liquidity today.