Brand valuation

Brand valuation is expressing the worth of a brand in money, usually for the balance sheet, an acquisition, licensing or the conversation with the financial leadership. The common methods estimate which share of future cash flows is attributable to the brand and discount it with a risk premium reflecting brand strength. The outcomes are useful but soft: reputable valuation houses routinely value the same brand billions apart, because assumptions about attribution and risk differ. The value of valuation therefore lies less in the precise number and more in the discipline: it forces the organisation to treat the brand as an investment rather than a cost.

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