The Comparable Uncontrolled Transaction Method is one of the valuation methods under the market approach which is applied for the valuation of intangible assets which are being transacted on an arm’s length basis. The valuations under this method normally relate to transfer pricing and taxation. The essence is to establish the fair market value of the intangible asset such as patents, know-how, trademarks and trade names which is a subject of a controlled transaction (intercompany/related party) with that of uncontrolled transaction (unrelated/third-party). The most appropriate comparable firm should be one in which the intangible asset is being used with similar products/processes as with the firm being valued and is in the same industry or market, besides being of a similar size. An example is a manufacturing process (patent) in an arm’s length transaction which has to be valued as if it were being transacted with a third party. This valuation method relies on profit level indicators such as (operating profit/sales), (gross profit / operating expenses), and (operating profit operating assets) on which the intangible asset is associated and compare that with the arm’s length transaction under consideration. From this, business valuators introduce adjustments to estimate the fair market value of the intangible asset being valued. The comparable uncontrolled transaction method is also referred to as the “Comparable Uncontrolled Transaction Transfer Pricing Method”.