A difference of opinion. Choose wisely, and a brand valuation exercise can help you unlock growth for your business. But with so many differences in brand. Applications for brand valuation. Interbrand’s brand valuation methodology seeks to provide a rich and insightful analysis of your brand, providing a clear picture. Brand. Brand Name. Region/Country. Sector. Change in Brand Value. Brand Value. Apple. The Americas. United States. Technology. +3%. , $m.
|Published (Last):||25 December 2005|
|PDF File Size:||14.7 Mb|
|ePub File Size:||17.16 Mb|
|Price:||Free* [*Free Regsitration Required]|
The subject who is truly loyal to the Chief Magistrate will neither advise nor submit to arbitrary measures. The following is an excerpt from Best Canadian Brands A Ranking by Brand Value. The report was published by Interbrand, in conjunction with Report on Business. Brand value is the Net Present Value NPV or today’s value of the earnings the brand is expected to generate in the future. This valuation approach is a derivative of the way businesses and financial assets are valued.
It fits with current corporate finance theory and practice. Interbrand identifies the revenues from products or services that are generated with the brand. From these Branded Revenues we deduct operating costs, applicable taxes and a charge for the capital employed to derive Intangible Earnings.
This is a prudent and conservative approach as it only rewards the intangible assets after the tangible assets have received their required return. Based on reports from financial analysts we prepare a forecast of Intangible Earnings for 6 years.
Since Intangible Earnings include the returns for all intangibles employed in the business, we need to identify the earnings that are specifically attributable to the brand. Through our proprietary analytical framework called Role of Branding we can calculate the percentage of Intangible Earnings that are entirely generated by the brand.
In some businesses, e. However, in other businesses nrand particular b2b the brand is only one purchase driver amongst many and the Role of Branding is therefore lower. In the case of Shoppers Mart people buy not only because of the brand but also because of the location of the stores. We have for each of the brands and categories assessed the Role of Branding. In situations where the brand is used across a variety of businesses, the Role of Branding figure was assessed for each core business segment.
The Role of Branding is a per cent – thus if it is 50 per cent, we take 50 per cent of the intangible earnings as Brand Earnings. If it is 10 per cent, we take only 10 per cent of the earnings. For deriving the NPV of the forecast Brand Earnings, Interbrand uses a discount rate that represents the risk profile of these intrbrand. There are two factors at play: Firstly, the time value of money i. The discount rate represents these factors as it provides an asset specific risk rate.
The higher the risk of the future earnings stream the higher will be the discount rate. To derive today’s value of a future expected earnings stream it needs to be ‘discounted’ by a avluation that reflects the risk of the earnings actually materializing and the time for which it is expected.
The assessment of Brand Strength is a structured way of assessing the specific risk of the brand. The ideal brand is virtually ‘risk free’ and would be discounted at a rate almost as low as government bonds or similar risk free investment. The lower the Rband Strength the further it is from the risk-free investment and so the higher the discount rate and therefore the lower the net present value. Using the edition of Report on Business’ Top list of the largest publicly traded Canadian corporations, Interbrand formed an initial consideration set of brands owned and operating in the country.
Published annual reports and analyst reports from multiple investment banks were used to examine the revenues, earnings and valyation sheets of the brand-owning companies.
The basis for the marketing assessments Interbrand’s experience in creating and managing brands over 30 plus years has created brand metrics that consider: Our expertise was supplemented with press articles, analysts comment and syndicated market research. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe. If you would like to write a letter to the editor, please forward it to letters globeandmail.
Readers can also interact with The Globe on Facebook and Twitter. Comments that violate our community guidelines will be removed.
How Interbrand measures brand value
Commenters who repeatedly violate community guidelines may be suspended, causing them to temporarily lose their ability to engage with comments. Read our community guidelines here. Article text size A. Published July 24, Updated April 23, There are ihterbrand key elements and they are detailed below: Story continues below advertisement.
Follow us on Twitter globebusiness Opens in a new window. Tickers mentioned in this story Data Update Unchecking box will stop auto data updates. Log in Subscribe to comment Why do I need to subscribe?
I’m a print subscriber, link to my account Subscribe to comment Why do I need to subscribe? We aim to create a safe and valuable space for discussion and debate.
How Interbrand measures brand value – The Globe and Mail
All comments will be reviewed by one or more moderators before being posted to the site. This should only take interbrannd few moments. Treat others as you wish to be treated Criticize ideas, not people Stay on topic Avoid the use of toxic and offensive language Flag bad behaviour Comments that violate our community guidelines will be removed.
Read most recent letters to the editor. Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Valuationn you for your patience. If you are valuarion to give feedback on our new site, please send it along to feedback globeandmail.
If you want to write a letter to the editor, please forward to letters globeandmail. House Democrats introduce plan to reopen U. Toronto-area woman at centre of court fight over brain death has died, family says.