Interbrand Brand Valuation Method
Definition: the Interbrand Brand Valuation Method is a brand valuation methodology constiting of 3 steps:
1. FINANCIAL ANALYSIS. At the first stage, the cash flow which is generated by all intangible assets is predicted. This is conducted through identifying the revenues from products or services that are generated with the brand after deducting applicable taxes, minus a charge for the capital employed to generate the brand's revenue and margins.
2. CALCULATE THE ROLE OF BRAND. The earnings that are specifically attributable to the brand are identified.
3. CALCULATE BRAND STRENGTH. The ability of the brand to create loyalty and, therefore, sustainable demand and profit into the future is calculated.
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