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 a brand as "A bundle of trademarks and associated IP which can be used to take advantage of the perceptions of all stakeholders to provide a variety of economic benefits to the entity."
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.
Value date: all brand values in the report are as at the 1st January.