Brand Valuation

Definition

Brand valuation refers to the estimation of the monetary value of a brand in a transaction whether it is internal or a purchase, sale or licensing agreement. It is the financial equity the company has in the brand as a transferrable asset.

The most popular brand valuation methods are the cost approach, market approach and income approach. [1]

Brand valuation and brand evaluation are related concepts and synergistic with each other. Brand evaluation is broader and includes non-monetary considerations.

While brand valuation is defined from the brand-owning entity’s point of view, brand evaluation is defined from the perspective of all stakeholders.[2]

See Also

ISO 10688 Brand Valuation
Financial Value of Brand (FVB)

References

  1. Common Language in Marketing Project, 2019.
  2. International Organization for Standardization, ISO 20671:2018.

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