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Components of Brand Valuation

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    Components of Brand Valuation

    Components of Brand Valuation : With the new world economy, brands place a significant role in marketing our businesses. Generally, brands refer to the name, symbol, signs, and logos that may identify a company, goods, or services.

    What comes to mind every time you think about the brand value? Most of us only think of it from a financial perspective which is not the only case. Probably why many of us think that way is because of the notion society has over several brands. For instance, a specific brand is famous for its expensive products. However, there is so much we are unaware of about brand valuation services.

    Brands valuation is the process of calculating a brand’s current value. It brings to the table its financial value, products, customers’ loyalty, and what an acquisition company is willing to pay to acquire the brand. This article will explain some of the components of brand valuation and their purpose.

    Components of Brand Valuation

    What does Components of Brand Valuation Involve?

    There are many things you must keep in mind during brand valuation. When evaluating a brand, there are two primary questions that you need to answer including, what are you valuing and the role of the valuation process. Brand valuation is sure to affect many vital areas, including licensing, acquisitions, mergers, tax planning, financial reports, commercial valuation, and investors’ purposes. Therefore, before the valuation process, identify the purpose of the brand valuation to avoid complications.

    Components of Brand Valuation

    Initially, brand valuation majored in marketing and financial reasons. However, currently, there are many improvements we can see in brand valuation and the things we must keep in mind during this process. Currently, components of brand valuation consists of several significant areas, including:

    • Legal evaluation

    This approach differentiates between the trademarks and the intangible assets and defines each entity. The evaluator needs to determine the property rights of these assets and offer legal protection that identifies them as part of the brand. The legal analysis also involves defining all the risks and what to do in such cases. Also, this method requires you to analyze the legal owner of the legal parameters and rights and their influence on the brand.

    It is an approach that bases its argument on the product’s behavior, customer, and the management team. A valuator keeps in mind the market trends and size and the brand’s role in the customers’ purchase decision. Also, they analyze why customers prefer the brand compared to its competitors.

    • Financial Analysis

    This method is based on several approaches, including cost, formulary, economic, and market approaches. In this case, the evaluator identifies the different sectors and their role in developing the brand.


    Generally, valuation is the process of discovering the value of a business and using these facts to identify the perfect plan to sell your brand. This article analyses brand valuation, giving all the crucial facts about the process. It explains brand evaluation and its most essential components. Read through this article and learn more about brand valuation and its features.

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