A Defensible Methodology, Not Just a Number
Valuation offered in a litigation or settlement context needs to survive cross-examination, which means the comparables and methodology need to be documented, not just the resulting figure. Analysis typically considers recent comparable domain sales in similar categories and TLDs, the domain's own direct-navigation and search traffic history, keyword and brand search volume, and any existing revenue the domain generates or has generated.
Where Valuation Fits in a Case
Domain valuation supports settlement negotiations directly, informs damages theories in ACPA and trademark litigation, and is sometimes required independently in a UDRP context where a respondent seeks to demonstrate a domain's legitimate market value predates and is unrelated to a complainant's mark.