A Production Backlog refers to unmet or incomplete orders of a manufacturing or construction firm. The existence of Production Backlogs is a sign of rising sales or excess orders over the production capacity of the firm. The existence of production backlog consistently over a long period qualifies as an intangible asset because such backlogs can be recognised and the potential value accurately measured. Intangible assets are a class of assets without physical form yet present intrinsic value and economic benefits which can be appropriated. During the business valuation of a manufacturing firm, production backlogs are considered, assessed, and valued separately as intangible assets separate from the tangible assets. To estimate the fair market value of production backlogs, business valuation analysts apply techniques under income, market and asset methods.