Brand Finance analyses companies’ brand strength ratings, based on marketing investment, brand equity – the goodwill accumulated with customers, staff and other stakeholders – and the impact of those on business performance. It then calculates the values of the brands using the ‘royalty relief approach’ – by estimating the likely future sales that are attributable to a brand and calculating a royalty rate that would be charged for the use of the brand were the company not to own it.
Updated: February 01, 2016, 12:00 AM