Brand Valuation Issues

The term brand value can often confuse. Brand value in some contexts can mean the financial value of a brand – its actual value. In other circumstances brand value means one of the intangible measures that contribute to the brand’s financial value.

Every brand is unique. Every brand valuation therefore requires a similarly bespoke approach or brand valuation method.

There are a number of different brand valuation methods. There are pros and cons of all these methods of valuing brands. A brand valuation method that is appropriate for one brand may not be the best valuation method for another.

‘What is brand valuation?’ is a frequently asked question. Brand valuation is the process used to calculate the value of brands. Historically, most of a company’s value was in tangible assets such as property, stock, machinery or land.

Brands can be defined as trademarks plus associated goodwill. They are a combination of physical, functional and emotional attributes. 

Valuing brands is done for a number different reasons. Valuing brands enables their owners to understand how brand value is generated and how much brand equity is present. This information can then be used for number of different purposes, including: