Brand extension right is a part of brand value, which reflects a brands sustainability to launch new products with the existing brand name. Conceptualizing movie sequels as brand extensions of their parent movies, we propose a novel approach to evaluate the financial value of the right to make a sequel (referred to in this article as the “sequel right”) from the perspective of brand extension spillover effect and analyze the impacts of core attributes in brand extension (e.g., whether the sequel is produced by the original team) on the value. This valuation approach can be used to explain the revenue and risk differences between the sequel and non-sequel movies, thus providing investors with a novel approach to evaluate the risks of the two investment alternatives. We conducted regression analyses for 96 sequel subsamples and the matched 223 non-sequel subsamples screened in mainland China theaters during 2010-2017 and estimated the risk-adjusted value of sequel right by comparing the predicted box revenues between the sequel and the matched non-sequel subsamples.