The Brand Valuation Model

Abstract

The aim of this research is to develop a brand valuation model based on public financial information. Besides, it is straightforward to quantify the brand value, which is viewed one of the major sources of competitive advantage for all public firms.

The brand valuation model adopts the concept of brand valuation approach introduced by Interbrand, but applies the public financial information for the measurement instead of scale points. This brand valuation model is built on financial performance (measured by EVA, economic value added), role of brand (measured by net sales growth) and brand strength (measured by standard deviation of sales). The efficiency of the brand valuation model has been demonstrated by applying it to the data collected from public listed firms in beverage industry in North America. The result of this study revealed a significant correlation between brand values and firms’ performance.

The aim of this research is to develop a brand valuation model based on public financial information. Besides, it is straightforward to quantify the brand value, which is viewed one of the major sources of competitive advantage for all public firms.

The brand valuation model adopts the concept of brand valuation approach introduced by Interbrand, but applies the public financial information for the measurement instead of scale points. This brand valuation model is built on financial performance (measured by EVA, economic value added), role of brand (measured by net sales growth) and brand strength (measured by standard deviation of sales). The efficiency of the brand valuation model has been demonstrated by applying it to the data collected from public listed firms in beverage industry in North America. The result of this study revealed a significant correlation between brand values and firms’ performance.