# Financial Data Summary: US10958080B2

## Patent Information
- **Patent Number:** US10958080B2
- **Assignee:** Samsung Electronics Co Ltd (South Korean, limited SEC filings)
- **Industry Classification:** Electronics (Consumer & Office)
- **Data Collection Date:** November 14, 2025

---

## Key Financial Metrics

### Weighted Average Cost of Capital (WACC)
| Metric | Value | Source |
|--------|-------|--------|
| **WACC** | **4.81%** | Damodaran Industry Dataset (January 2025, NYU Stern) |

**Interpretation:** The WACC of 4.81% represents the average rate of return required by all capital providers (equity holders and debt holders) in the Electronics (Consumer & Office) industry. This rate is used to discount future cash flows in DCF valuation models for comparable companies in this sector.

### Net Profit Margin
| Metric | Value | Source |
|--------|-------|--------|
| **Net Profit Margin** | **1.15%** | Damodaran Industry Dataset (January 2025, NYU Stern) |

**Interpretation:** The industry average net profit margin of 1.15% indicates that for every dollar of revenue generated by companies in the Electronics (Consumer & Office) industry, approximately 1.15 cents remain as net profit after all expenses, taxes, and other costs. This reflects the relatively thin margins typical of the consumer electronics sector due to competitive pricing pressures.

---

## Data Sources & Methodology

### Primary Source: Damodaran Industry Dataset
- **Institution:** Aswath Damodaran, NYU Stern School of Business
- **Dataset Update Frequency:** Annually (January)
- **Current Version:** January 2025
- **Access Method:** Direct lookup from Damodaran's publicly available industry statistics

**Source URL:** https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/wacc.html

### Rationale for Data Selection
1. **Industry Relevance:** Damodaran's Electronics (Consumer & Office) classification directly matches the target patent's industry sector
2. **Reliability:** Industry averages derived from comprehensive financial databases covering multiple public companies
3. **Currency:** January 2025 update ensures recent financial market conditions are reflected
4. **Applicability:** Metrics derived from companies with similar operational and capital structures to the assignee

---

## Industry Context: Electronics (Consumer & Office)

The consumer and office electronics industry is characterized by:
- **Highly Competitive Environment:** Multiple global competitors (Samsung, Apple, Dell, HP, Lenovo, etc.)
- **Thin Margins:** Low profit margins (1.15% average) due to commoditization and price competition
- **Capital Intensity:** Moderate to high capital requirements for R&D and production facilities
- **Cyclical Demand:** Subject to economic cycles and consumer spending patterns

### Relevance to Patent Valuation
These financial metrics provide essential benchmarking data for:
- **Comparable Company Analysis:** Using industry averages to supplement company-specific financials
- **DCF Valuation:** Applying appropriate discount rates to projected cash flows from patent commercialization
- **Royalty Rate Estimation:** Cross-referencing with royalty benchmarks for similar technology licenses
- **Risk Assessment:** Understanding industry profitability and capital cost structures

---

## Data Quality & Limitations

### Strengths
✓ Peer-reviewed industry averages from authoritative academic source  
✓ Recent data (January 2025)  
✓ Comprehensive coverage of comparable companies  
✓ Standardized calculation methodology across all industries  

### Limitations
⚠ Assignee (Samsung Electronics) has limited SEC filings; asset-light valuation approach required  
⚠ Industry averages may not reflect company-specific competitive advantages  
⚠ WACC reflects cost of capital for industry participants; actual Samsung WACC may differ  
⚠ Profit margins are time-dependent; cyclical variations expected  

---

## Citation Format

**Full Citation (APA):**
Damodaran, A. (2025). *Industry average statistics: WACC and profit margins*. NYU Stern School of Business. Retrieved November 14, 2025, from https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/wacc.html

**Suggested Use in Report:**
"According to Damodaran's January 2025 industry dataset, companies in the Electronics (Consumer & Office) sector maintain a weighted average cost of capital of 4.81% and average net profit margins of 1.15% (Damodaran, 2025)."

---

## Next Steps in Valuation Process

This financial data will be integrated into:
1. **DCF Analysis:** Using 4.81% WACC as the discount rate
2. **Comparable Company Method:** Benchmarking Samsung's metrics against industry averages
3. **Royalty Rate Analysis:** Cross-referencing profit margins to establish reasonable royalty rate ranges
4. **Sensitivity Analysis:** Testing valuation outcomes under different margin and WACC scenarios

---

*Document prepared as part of IP Valuation Analysis for Patent US10958080B2*  
*Generated: November 14, 2025*  
*All data sourced from Aswath Damodaran, NYU Stern (January 2025 Dataset)*
