What’s the Value of Your Brand?

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Each year, brand consultancy Interbrand releases its study of the Best Global Brands. This year’s study will be released on September 22nd and will feature brands you’re familiar with like Coca-Cola, Google, Starbucks, Nike, Apple, Microsoft, IBM and others.

How does Interbrand measure the value of the brands they feature in their report? They have a complex algorithm they use for their own brand ranking, but a simplified version of it is to take your company’s market capitalization, subtract out the assets and what remains is a simplified version of your brand value.

The argument for this formula is that the money that people would pay above-and-beyond the cost of your hard assets represents the incremental value your brand brings to your company.

If you’re a privately-held company, you can use a similar formula — take the market value of your company, subtract out your assets and you’ve essentially got a simplified version of the same calculation.

For the “Big Daddy” report, keep an eye out here and in other media on September 22nd. Interbrand’s report always gets lots of press.

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Time Wednesday, August 13th, 2008, 2:07 pm   |   CategoryUncategorized  |  RssRSS feed |  CommentRespond  |  TrackbackTrackback

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