The Royalty from Relief method is one of the business valuation methods under the income approach used for the valuation of intangible assets. Under this method, business valuators estimate the value of an intangible asset by drawing from potential royalties the company will pay for using the intangible assets from a third party. Under the method, business valuators apply the prevailing rate to forecast cash flows which are then discounted by applying the discount rate (weighted average cost of capital) to estimate the fair market value of the intangible asset.