Friday, September 16, 2011

Brand Value Index

The latest brand value index is out from Brand Finance--the London-based company. It is interesting to see the leader board.

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Many may quarrel and quibble with the assumptions underlying the actual dollar value of 'brands.' I am sure you may have your own viewpoints on such metrics. Please add your voice to the discussions on the brand value in general or the brand value of the technology companies that seem to be at the top of this list.

2 comments:

  1. I'm not sure that I understand the basis for the valuation of the brand. I know that "Brand Finance uses a fairly straightforward discounted cash flow technique to arrive at a net present value of a company's trademark and associated intellectual property". But, it all ends up feeling a bit soft to me due to the necessary guesses at future trademark value and future IP value. I understand that people like making rankings as an intellectual exercise. I'm not sure how it should affect my thinking.

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  2. According to FT, brand value is calculated "on a number of factors, including an estimate of the brand’s contribution to earnings, valuation of intangible assets, measures of customer perception and an estimate of growth potential." This calculation was for another ranking, by BrandZ, of most valuable global brands, where the rankings were similar but not identical: (to mention a few, in order) Apple, then Google, followed by IBM, in the top 3 spots.

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