Our point of view
It is often claimed that the difference between the market value of companies and their book value is their brand(s). Our view is that brands (or "marketing-related intangible assets" as the accountants prefer to say) are just one of the five major classes of intangible asset. Depending on the industry sector (and we have analyzed more than 200 of them), the average percentage of market value attributable to brands range from 1% to over 40%.
A consistent topic of our research is the evolution of the market-to-book ratio of the major stock markets around the world, and an increasingly granular investigation of the impact of branding by industry sector.
We also participate actively in the debate about whether brand valuation is a useful definition of brand equity.
This presentation on "How Big is Brand?" summarizes our research on the significance of brands as business assets and our current areas of focus.
We have written a number of articles specifically on the topic of brand valuation:
"Don't Waste Time With Brand Valuation" was published in the October 2004 edition of MarketingNPV.
"How to Define Your Brand and Determine Its Value" appeared in the May 2004 edition of Marketing Management.
"Brand Valuation: What it Means and Why it Matters" appeared in the May 2004 edition of Intellectual Asset Management.
Our report for the Institute of Communication Agencies on "Measuring and Valuing Brand Equity" contains a detailed analysis of when and how to conduct a brand valuation. The report was published by Canadian Business in November 2004 (please contact us directly if you would like a copy).