Brand Finance is the world’s leading independent branded business valuation and strategy consultancy, present in over 20 countries.Who we are
Financial accounting and reporting standards need a clear definition of what intellectual property is included in the definition of ‘brand’.
Brand Finance defines brand as the “Trademark and associated IP including the word mark and trademark iconography”.
Brand Finance calculates brand value using the Royalty Relief methodology which determines the value a company would be willing to pay to license its brand as if it did not own it. This approach involves estimating the future revenue attributable to a brand and calculating a royalty rate that would be charged for the use of the brand. The steps in this process are as follows:
These are derived from the Brand Strength Index which benchmarks the strength, risk and future potential of a brand relative to its competitors on a scale ranging from D to AAA. It is conceptually similar to a credit rating.
Valuation date: all brand values in the report are as at the 1st January.