Brand Valuation Methods

Brand valuation methods for calculating the market value of the brand, as in general valuation approaches, are based the following approaches:

• Cost
• Revenue
• Marketplace / Market
• Value (assets-specific)

approaches.

However; definitions can be made in the form of financial, behavioral, and mixed practices.

Cost Approach is based on creation or purchase values.

Revenue Approach is based on the estimation of the cash flows that the branded product will obtain during its economic life and its reduction to its present value.

• Determination of Royalty Rate
• Determination of Price Premium
• Determination of Other Parameters

Marketplace / Market Approach It is based on peer brand sales and comparable company changes. Brand Valuation may also be of interest to you.