## 3 Analysis
### Software Value Calculation Method  
Software valuation can be performed by selecting an appropriate methodology depending on the intended purpose. The methodology for calculating value is determined based on the technological maturity of the software, which can be evaluated using the income approach, market approach, or cost approach. The specifics of each approach are detailed in the table below (Table 3). In summary, the appropriate value estimation methodology can vary depending on whether the software is in the early stages of development or has reached the commercialization stage [53]. The target of technology valuation can be categorized into technology assets, technology, intellectual property, human assets, and market assets. Depending on the purpose and nature of the valuation, it is common to exclude human assets and market assets during the evaluation process [54]. At present, the evaluation of technology encompasses a range of factors, including the economic life cycle of the technology, sales projections, financial analysis, economic profit flow, discount rate, business value, technical contribution, and technology value. When conducting a software valuation, the value assessment is typically based on technical maturity; however, in certain cases, all three methodologies are utilized to appraise the value, followed by a consultation process. The income approach uses the DCF (Discounted Cash Flow) method to calculate the VT (Value of Technology). It is determined by multiplying the degree of technology contribution, which is the extent to which technology contributes to business value, as shown in Equation (1) below. When determining the technological contribution, it is important to avoid underestimating the value of software assets by calculating the contribution of technology as the proportion of software in certain modularized parts of the vehicle's  
Figure 3: Systematic securing of BIP (Revised). \begin{table}
\begin{tabular}{c c c c} \hline \hline
**Value Degree** & **Stage** & **Value Calculation Method** & **Accuracy** \\ \hline \multirow{2}{*}{High} & Commercialization & Market approach/Income approach & \multirow{2}{*}{High} \\  & Development completed & Income approach/Market approach & \\ \(\uparrow\) & Developing & Alternative cost approach/Royalty deduction approach & \(\uparrow\) \\ \multirow{2}{*}{Low} & Initial & Regeneration cost approach & Low \\ \hline \hline \end{tabular}
\end{table} 
Table 3: Calculation of value based on technological perfection. value. In Equation (1), t represents the period during which cash flow estimation is made; n represents the economic life cycle of the technology; CFt represents the cash flow in period t; r represents the discount rate; and technology contribution represents the contribution of technology to business value [53]. \[\text{VT}=\sum_{i=0}^{n}\frac{CFt}{(1+r)t}\times\text{technology contribution} \tag{1}\]  
The royalty deduction method assumes that a company licenses technology from a third party because it does not possess the target technology. Generally, a license fee must be paid during the economic life of the licensed technology, and the present value of the total amount of royalties paid is estimated as the technology value. To use the royalty deduction method, there must be many comparable technology transaction royalty data in the technology transaction market. In the case of automobile and trailer manufacturing, the median royalty value of 3% can be applied to the calculation if statistics of the technical evaluation guide are applied. When evaluating the value of vehicle software, the accuracy of the value evaluation can be increased by calculating the proportion of R&D personnel involved in the parts if the software contribution to the price is limited by modularization. The royalty rate estimation formula is as follows [55].