Brand Valuation Methodology​

Our methodology is as per international best practices and easy to understand

We determine brand value using the Royalty Relief Method of Income Approach. We determine value; a company would be willing to pay to license its brand as if it did not own it. We follow following steps;

  • Determine Brand Strength Index Scope through Brand Survey
  • Determine the most suitable royalty rate out of royalty range for the respective brand sectors. This is done by reviewing and cross verifying with data from international sources.
  • Determine royalty rate using a well-defined universal approach.
  • Determine brand specific revenues and cross check with historical and industry growth & performances indicators.
  • Determine implied royalty charge by applying royalty rate to forecasted revenues.
  • Determine discount rate, terminal growth rates, effective tax rates etc.
  • Determine Net Present Value of post-tax forecasted royalties and terminal value.
  • NPV represents current value of the future income attributable to the brand asset.
Why this approach
  • It is as recognized as “International best practice?
  • It is favored by tax authorities
  • it calculates values by reference to well documented third party transactions
  • Publicly available information is used.
  • Compliant with requirements of International Valuation Standards Authority and ISO 10668.

Brand Valuation Process

brand value Determination process

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