The brands that appear in this
report are the most valuable in
They were selected for inclusion in the
BrandZ™ Most Valuable Global Brands
Top 100 and category rankings based on
the unique and objective BrandZ™ brand
valuation methodology that combines
extensive and ongoing consumer research
with rigorous financial analysis.
The BrandZ™ valuation methodology
can be uniquely distinguished from its
competitors by the way we obtain consumer
viewpoints. We conduct worldwide,
ongoing, in-depth quantitative consumer
research, and build up a global picture of
brands on a category-by-category and
Our research covers three million
consumers and more than 100,000 different
brands in over 50 markets. This intensive, inmarket
consumer research differentiates the
BrandZ™ methodology from competitors
that rely only on a panel of “experts”
or purely financial and market desktop
Before reviewing the details of this
methodology, consider these three
fundamental questions: Why is brand
important; Why is brand valuation important;
What makes BrandZ™ the definitive brand
Importance of Brand
Brands embody a core promise of values
and benefits consistently delivered. Brands
provide clarity and guidance for choices
made by companies, consumers, investors
and other stakeholders. Brands provide the
signposts we need to navigate the consumer
and B2B landscapes.
At the heart of a brand’s value is its ability to
appeal to relevant customers and potential
customers. BrandZ™ uniquely measures
this appeal and validates it against actual
sales performance. Brands that succeed in
creating the greatest attraction power are
those that are:
In any category, these brands appeal more,
generate greater “love” and meet the
individual’s expectations and needs.
These brands are unique in a positive way
and “set the trends,” staying ahead of the
curve for the benefit of the consumer.
These brands come spontaneously to mind
as the brand of choice for key needs.
Brand valuation is a metric that quantifies
the worth of these powerful but intangible
corporate assets. It enables brand owners,
the investment community and others to
evaluate and compare brands and make
faster and better-informed decisions.
Distinction of BrandZ™
BrandZ™ is the only brand valuation tool
that peels away all of the financial and other
components of brand value and gets to the
core — how much brand alone contributes
to corporate value. This core, which we call
Brand Contribution, differentiates BrandZ™.
The Valuation Process
Step 1: Calculating
We start with the corporation. In some
cases, a corporation owns only one brand.
All Corporate Earnings come from that
brand. In other cases, a corporation owns
many brands, and we need to apportion
the earnings of the corporation across a
portfolio of brands.
To make sure we attribute the correct
portion of Corporate Earnings to each brand,
we analyze financial information from annual
reports and other sources, such as Kantar
Retail. This analysis yields a metric we call
the Attribution Rate.
We multiply Corporate Earnings by the
Attribution Rate to arrive at Branded
Earnings, the amount of Corporate Earnings
attributed to a particular brand. If the
Attribution Rate of a brand is 50 percent, for
example, then half the Corporate Earnings
are identified as coming from that brand.
What happened in the past or even what’s
happening today is less important than the
prospects for future earnings. Predicting
future earnings requires adding another
component to our BrandZ™ formula.
This component assesses future earnings
prospects as a multiple of current earnings.
We call this component the Brand Multiple.
It’s similar to the calculation used by
financial analysts to determine the market
value of stocks (for example: 6x earnings
or 12x earnings). Information supplied by
Bloomberg data helps us calculate a Brand
Multiple. We take the Branded Earnings and
multiply that number by the Brand Multiple
to arrive at what we call Financial Value.
Step 2: Calculating
So now we have got from the total value
of the corporation to the part that is the
branded value of the business. But this
branded business value is still not quite the
core that we are after. To arrive at Brand
Value, we need to peel away a few more
layers, such as the in-market and logistical
factors that influence the value of the
branded business — for example: price,
availability and distribution.
What we are after is the value of the
intangible asset of the brand itself, which
exists in the minds of consumers. That
means we have to assess the ability of brand
associations in consumers’ minds to deliver
sales by predisposing consumers to choose
the brand or to pay more for it.
We focus on the three aspects of brands
that we know make people buy more and
pay more for brands: being Meaningful
(a combination of emotional and rational
affinity), being Different (or at least feeling
that way to consumers), and being Salient
(coming to mind quickly and easily as the
answer when people are making category
We identify the purchase volume and any
extra price premium delivered by these brand
associations. We call this unique role played
by brand the Brand Contribution.
Here’s what makes BrandZ™ so unique
and important. BrandZ™ is the only brand
valuation methodology that obtains
this customer viewpoint by conducting
worldwide ongoing, in-depth quantitative
consumer research, both online and face-toface,
building up a global picture of brands
on a category-by-category and market-bymarket
basis. Our research now covers over
three million consumers and more than
100,000 different brands in over 50 markets.
Step 3: Calculating
Now we take the Financial Value and multiply
it by Brand Contribution, which is expressed
as a percentage of Financial Value. The
result is Brand Value. Brand Value is the
dollar amount a brand contributes to the
overall value of a corporation. Isolating and
measuring this intangible asset reveals an
additional source of shareholder value that
otherwise would not exist.
Why BrandZ™ is the definitive
Brand Valuation Methodology
All brand valuation methodologies
are similar — up to a point.
All methodologies use financial
research and sophisticated
mathematical formulas to
calculate current and future
earnings that can be attributed
directly to a brand rather than
to the corporation. This exercise
produces an important but
What’s missing? The picture
of the brand at this point lacks
input from the people whose
opinions are most important -
the consumers. This is where
the BrandZ™ methodology
and the methodologies of our
competitors part company.
How does the competition
determine the consumer view?
Interbrand derives the consumer point of view from panels of experts who
contribute their opinions. The Brand Finance methodology employs a
complicated accounting method called Royalty Relief Valuation.
Why is the BrandZ™
BrandZ™ goes much further and is more relevant. Once we have the
important, but incomplete, financial picture of the brand, we communicate
with consumers, people who are actually paying for brands every day. Our
ongoing, in-depth quantitative research includes three million consumers and
more than 100,000 brands in over 50 markets worldwide.
What’s the BrandZ™ benefit?
The BrandZ™ methodology produces important benefits for two broad
- Members of the financial community - including analysts, shareholders,
investors and C-suite, who depend on BrandZ™ for the most reliable and
accurate brand value information available.
- Brand owners, who turn to BrandZ™ to more deeply understand the
causal links between brand strength, sales, and profits and to translate
those insights into strategies for building brand equity.