Brand Equity Valuation

Why Brand Science versus subjectivity?

The stakes have never been higher in choosing the right level of resources to allocate to brand investments. A solid Brand Equity Valuation case is essential to gaining leadership buy-in. It’s our mission to help you get it right. And that’s what Brand Science over subjectivity delivers.

We believe in transparency. Our Brand Science approach is rooted in objective, quantitative market research – BrandPower – correlated to financial performance. As a result, our valuations help you understand more than just your brand ranking based on a dollar value.

Time-tested over two decades of market research, our Brand Equity Valuation approach sets the standard, using reliable, stable data that your leadership team can trust.

How our Brand Equity Valuation works

Companies want greater transparency and a clear line of sight into what’s driving the value of their brand equity. Most valuation vendors utilize black-box methods.

Our Brand Equity Valuation approach is the only methodology audited and verified by the Marketing Accounting Standards Board. Experts rate it the most reliable and accurate valuation method available.

Our tools measure your brand’s value as both a specific dollar amount and as a percentage of market capitalization. The quarterly results provide a benchmark comparison between your brand and competitors that you define.

Brand Equity Values in dollars vs. as a percentage of market cap

Our Brand Equity Valuation benchmarking tools make it easy to understand your brand value relative to peers. When a brand’s contribution is lower than the industry average, our analysis can identify growth opportunities and predict return on brand investment. These examples show that Apple’s brand generates the largest dollar value. Benchmarked against tech giants, Apple also demonstrates solid performance for brand value as a percentage of market capitalization.

Brand Equity Valuation decision support

Our data helps you put your brand’s contribution to financial performance in context at any point in time to understand:

  • Is your brand driving greater financial value than competitors’ and CoreBrand Analytics sector benchmarks? How much more (or less) over time? Are you improving quarter after quarter?
  • Is brand driving momentum for financial performance, presenting an ideal window to increase brand investments? How much value can be created?
  • Is decay in brand value dragging down financial results? If financials are improving, is your brand getting credit?

Our Brand Equity Valuation methodology

This independent measurement of brand health provides a truly objective assessment of brand value. Our methodology is completely transparent and involves no “black-box” set of judgments. Instead, we leverage reliable, stable market research, BrandPower data. With 25 years of proven research data, we can ensure consistent input to our model. This statistical model identifies the contribution of the brand and evaluates it in the context of financial data to determine brand dollar value.

Brand Equity Valuation is expressed two ways:

  • The percent that the brand contributes to market cap tells how much value can be directly attributed to the brand. It measures the overall impact of your efforts. In turn, senior leadership can build a business case and evaluate the return-on-brand investments, in a way that is easily understood.
  • The dollar value of the brand is the brand’s value to the company as an intangible asset. This number can change day-to-day as the company’s overall enterprise value fluctuates. It is used to help senior leadership understand the brand’s asset value and is also a measure of the value that the market places on the brand.

Brand Equity Valuation in action

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