The excess earnings method is part of the intrinsic or income approach to valuation. The excess earnings method consists of attributing excess earnings to the brand by deducting the contribution of all the other tangible and intangible assets to a company's total economic earnings. To apply this approach, an overall valuation of the business operating the brand must first be carried out. This can be done using a discounted cash flows approach or an economic profit approach. The excess earnings method is relatively challenging to implement, as it requires high quality data and a detailed analysis of several factors: the business plan, the return required by investors, excess profits, and unrecognised intangible assets. Defining the numerous necessary parameters involves mature economic and strategic analyses. In practice, the excess earnings method is one of the intrinsic or income-based methods often used for brand valuation. Using several methods, if feasible, is usually preferable to using one.