Other factors affecting market share. must be remov from the assessment. In addition. costs incurr to secure or expand market share must be duct from cash flow. When evaluating brands. premium approaches and possible cost savings must also be consider. Brand Valuation Premium Approach In the premium approach. cash flow is bas on the premium a brand can achieve. To determine the premium. a comparison with unlabel products is requir and brand-independent factors that cause the premium are remov. However. since unbrand products rarely exist in reality. comparisons must be made with the brands.
Such as market imperfections
With the lowest brand strength. flow must be Chile Mobile Database duct in the valuation. Brand valuations must also consider the possible benefits of cost savings and volume premium approaches. Brand Valuation Profit Split Method The profit split method evaluates cash flows bas on the present value of the economic profit attributable to the brand. The standard defines economic profit as net profit minus capital expenditures. Additionally. the results of behavioral research should be incorporat into brand assessments to determine the brand’s impact. Brand Valuation Using the Residual Value Method The residual value method values cash flows bas on future financial earnings and ducts imput royalties on the company’s other assets.
Ne To realize the price premium
The cost of capital must be calculat separately WS Phone List for each group of intangible assets. but only if each group of intangible assets also generates a financial surplus. Brand Valuation Excess Profit Method The general excess profit method compares the financial earnings of comparable companies that do not own the brand. Since this assumption is unrealistic. this approach is rarely practical. The royalty-relief approach in brand valuation Using the royalty-relief approach. the valuation of cash flows is bas on the present value of hypothetical license payments. These expect future royalties are calculat on the assumption that the company.
