Brand Valuation – Why is it Required, Methods, Challenges
Brand valuation is the process used to calculate the value of a brand . In today’s fast-paced, interconnected era businesses utilize various tangible and intangible assets for brand value creation and accretion. The brand is one such intangible asset. Brands create distinctive images and associations in the minds of customers and stakeholders and serve as a way for companies to differentiate themselves in the marketplace and establish a strong identity. Brands can become very valuable. Recently Brand Finance listed the Tata Group brand name , valued at $26.4 billion, as India’s most valuable brand. In this article, we will describe factors that are relevant to brand valuation and generally accepted brand valuation methods as it applies to these contexts. Monte Carlo Simulation for Valuations Why is Brand Valuation required? Brand valuation quantifies the value of a brand, which is often a significant asset, and provides a solid foundation for decision-making, financial reporting, and b...