How do I value a brand?

They say infy is valued at 2700 Cr. and lux is an 800 cr. brand... is t true... how does one value a brand?

what are the different ways of valuing a brand?


alok's picture

Brand valuation takes into consideration not just the the tangible(revenues) but also intangible aspects of the brand such as patents,copyrights,distribution,its equity,etc.
There are many agencies involved in brand valuations such as Brand Finance UK and Seth Associates in India.
There is a hell lot more to brand valuation than what can be accomodated on this forum,different bodies/agencies have different ways of coming up with a brand's value and is highly subjective as there is no international standard or technique that exists for brand valuation

To put it in simple terms... If I had a generic pen, how much would a customer pay for it. If this pen had the brand name on it, how much extra would the customer pay for it (or how much more value is it for the customer). That is brand value.

Of course brand consultants would use this basic principle and add multiple parameters like brand lifespan, brand diversification potential, competing brands analysis, environmental factors to arrive at a valuation of a brand. There are a few valuation models out there but I don't have much of an idea.

Brand value does not take any tangible asset of the company into consideration, but current revenues of the products under the brnad could be used as a yardstick.