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    Brand Valuation

    Brand valuation is the total net worth of a brand or, in other words, what another company would be willing to pay for it.

    What Is Brand Valuation?

    Brand valuation is the total financial value of a business, and this measurement includes tangible and intangible factors. Tangibly, it includes the amount of money currently on hand, liquid assets, and other immediate financial determinants.

    Intangibly, brand valuation includes things like customer perception, brand recognition, brand salience, copyrights, trademarks, and the brand’s position within the marketplace. These factors are typically estimated and cataloged during a merger or acquisition, but having a general pulse on brand valuation at all times can help a business assess its performance.

    Businesses can calculate their brand valuation using several different methods. A cost-based approach looks at the amount of money it has taken to build the brand to its current position. A market-based approach looks at consumer perception metrics to determine how valuable the brand is to current customer segments. An income-based approach uses current income to predict future earnings.

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