Originally posted by beholder3 "Brand value" expresses the value of the abstract brand. It has nothing to do with sales, employees or any other similar hard fact item.
It is about the intangible value of the brand name recognition. Usually this is put as goodwill asset on balance sheets.
You can be the worlds largest producer of weapons for murderers with billions of sales and millions of employees, but still your brand value will likely be zero or negative.
Or you can be a non-profit organization of five people and still have a huge brand value.
It is basically the monetary value of how many people recognize who the brand is and how positive the image is.
If it's intangible (i.e. "
something that exists but that cannot be touched, exactly described, or given an exact value") yet represents monetary value based on brand awareness and moral reputation ("
how positive the image is"), how on earth does someone measure that objectively and unambiguously?
Is the methodology clearly explained anywhere? Is there a formula?
Colour me confused
EDIT: OK... I've re-read your last post and you mention "goodwill". I think I may understand a little better, now... So is "brand value" the entire proposed financial value of the brand - tangible and intangible, including goodwill - or is it just the goodwill portion?
I'm not an accountant, but I suspect this is primarily relevant in valuation prior to sale, acquisition, raising capital / borrowing etc. - no?