Brand Valuation Services

COST APPROACH

The cost-based approaches describe the value of a brand as the total of all historic costs incurred or replacement costs needed in developing the brand to its present condition, which is the aggregate of the development costs, marketing costs, advertising, and other communication costs. The cost-based Best Brand Valuation Services in Singapore can be accomplished through:

The historical cost of creation method uses the historical cost of taking the brand to its present value.

The replacement cost method accomplishes best brand valuation by considering the expenses and investments needed to replace a brand with a new one that has a similar advantage for your company.

The cost to recreate method uses the current outlays to determine the cost of recreating a brand currently.

The residual value method affirms that brand value is the discounted residual value achieved by finding the difference between cumulative revenues attributable to the brand and cumulative brand costs.

Brand value = PV(ΣBrand revenues – Σbrand costs)

The cost-based approach is usually unsuccessful because of no straightforward association between the financial investments taken up and the value addition of the brand.

INCOME APPROACH

The income approach is the most popular approach employed for valuing a brand. It centers on the current value of the economic advantages that the brand will produce in the future. The approach analyses the profits earned in the future by essentially using the brand name. However, the approach is surrounded by the vagueness of future predictions. Some of the methodologies of this approach are:

relief from royalty method is an ‘economic usage’ valuation method that ascertains the value of a brand concerning the royalty owed for using it when owned by a third party.

The premium price method determines the value of a brand by the volume premium it produces compared to an identical but unbranded product or service. The technique is not well recognized because it is hard to identify an available product with which the special price of the branded product can be evaluated.

The incremental cash flow method recognizes all cash flows produced by the brand in a business by comparing with similar companies with no such brand. Both elevated revenues and decreased costs produce cash flows.

MARKET APPROACH

The market approach investigates the value based on the transaction value of assets. The valuation in this approach is assessed as per the transactions among third parties. Therefore, the method is typified by great objectivity. However, in particular, for intellectual property rights, identical transactions with comparable recognition, intensity, or economic and legal scenarios usually do not occur, and the implementation of this approach is quite hard.

Moreover, all the above standard financial approaches cannot determine the brand value because, during Singapore brand valuation, qualitative elements also should be measured based on studies on consumer behavior. Hence, in the Brand Valuation Singapore process, it is imperative to undertake both the financial approaches of valuation and research-based approaches.

RESEARCH APPROACH

Most of the research-based approaches that value a brand make use of consumer behavior and mindsets that influence the economic functioning of brands. Though the complexity and intricacy of such prototypes differ, they all attempt to describe, elucidate, and compute consumer viewpoints that affect their buying actions.

The approaches encompass several measurement tools, such as stages of familiarity, understanding, recognition, significance, particular impression, buying thoughtfulness, inclination, contentment, and endorsement. All these features are allocated diverse brand equity scores, and the sum of all the scores assigned to various features gives the complete brand score.

An alteration in one or a grouping of indicators is anticipated to affect consumers’ buying actions, influencing the financial value of the brand being evaluated. However, these approaches do not distinguish between the outcomes of other prominent aspects, such as R&D, design, and the brand. Hence, these approaches do not define identifiable marketing indicators and financial functioning.