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Can brand value really be measured? How?

There are many methodology professed by various brand valuation companies. Until today, there isn’t an agreed system in measuring it and as much as we can attempt to attach a monetary value to a brand, the value must be viewed only as a theoretical value and not a realized value. This is similar to the value of diamonds in the resale market. Even though the diamond industry can provide a value estimation, the true value of the resale diamond is the amount that a customer is willing to pay. Drawing from the same analogy, the true value of a brand is the highest amount that an acquiring company is willing to pay.

Hovman Goh - July 29, 2006

In my opinion, it is absolutely critical that clear, open standards for valuing brands be adopted, and that publically traded companies should be required to disclose the value of their brands on their balance sheet. Progress is slowly being made in this direction, especially in Europe, but I wish it could be expedited.

The benefits of this would be threefold: first, it would allow public companies to be more accurately valued, second, it would encourage companies to focus more on branding (and also potentially shift the focus to managing for the long term), and third, it would likely reduce the incidence of great brands being lost as a result of M&A activity.

William Golden Wilkins, Founder & Chief Executive Officer, Integral Identity - July 29, 2006

Please don't value brands at all. Just give all these "worthless" Brands to me.

Mike, Marketing Director, The Brand Valuers - July 30, 2006

Valuation can imply commoditisation, and an enforced belief that 'assets' are based on units of currency, rather than the more enduring aspects that sustain a brand, business or commercial entity. It seems the 'stayers' are forced to realise their full characters and value through channels other than capital, asset valuations and so on ... 'purpose' is wider, value can be elusive. Performance doesn't lie. Nor does demonstrated consumer confidence in a brand. You can't put a price on that, or maximum brand innovation. Business and brands are boiling down to strength of character, over balance sheets and creative accounting. Reverting to balance sheets is to ignore the strength, and value, of authenticity and innovation. The locus and perception of 'value' needs to be repositioned in this sense. In an impatient world shouting 'show me the money', the only survivors are those with a calibre of character you cannot copy, nor put a price on. Just like outstanding people. We value them, but we'd never put a price on their head.

Michelle Wigzell, Integrated Communications Designer - July 31, 2006

There are three models for monetary evaluation of intangible assets:

- cost approach,
- market approach and
- income approach.

The accepted methode – at least by the IRS and other governmental bodies - is the income approach, where income is calculated as discounted cash flow.

Everything else is monkey business.

We successfully apply these methodes for brand lending and Brand-Sale-Leaseback transactions.

Michael Ziering, BrandCapital.us - July 31, 2006

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