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The global source for Brand valuations & Brand insights

BrandZ™ Brand Valuation Methodology



A BrandZ™ ranking of brand valuations lists the brands making the largest absolute $ contribution to the total value of their respective parent companies, considering both current and projected performance.
This is the true value of brand building and we want to isolate and reward the brands making the largest contributions to the success of their parent companies.
A company may have huge overall business value but the absolute $ contribution made by the relevant brand(s) that the company owns may not be a comparatively large figure – at least not a large enough figure to qualify for the given BrandZ™ ranking of brand values.

The brands that appear in this report are the most valuable brands in the world. They were selected for inclusion in the BrandZ™ Top 100 Most Valuable Global Brands 2019 based on the unique and objective BrandZ™ brand valuation methodology that combines extensive and on-going consumer insights with rigorous financial analysis.

The BrandZ™ valuation methodology can be uniquely distinguished from its competitors by the way we use consumer viewpoints to assess brand equity, as we strongly believe that how consumers perceive and feel about a brand determines its success and failure. We conduct worldwide, on-going, in-depth quantitative consumer research, and build up a global picture of brands on a category-by-category and market-by-market basis.

Globally, our research covers over 3.7 million consumer interviews and more than 165,000 different brands in over 50 markets. This intensive, in-market consumer research differentiates the BrandZ™ methodology from competitors that rely only on a panel of “experts”, or purely on financial and market desktop research.

Before reviewing the details of this methodology, consider these three fundamental questions: why is brand important; why is brand valuation important; and what makes BrandZ™ the definitive brand valuation tool?

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.


They come spontaneously to mind as the brand of choice for key needs.

Importance of brand valuation

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.

Brand valuation also enables marketing professionals to quantify their achievements in driving business growth with brands, and to celebrate these achievements in the boardroom.

Distinction of BrandZ™

BrandZ™ is the only brand valuation tool that peels away all the financial and other components of brand value and gets to the core – how much brand alone contributes to corporate value. This core, what we call Brand Contribution, differentiates BrandZ™.


BrandZ valuations isolate the value generated by the strength of the brand alone in the minds of consumers i.e. with all other elements removed.
To achieve this, we calculate and combine two important elements: Financial Value and Brand Contribution
(i)         Financial Value – the proportion of the total $ value of the parent company that can be attributed to the brand in question, considering both current and projected performance.
(ii)        Brand Contribution - quantifies the proportion of this Financial Value that is directly driven by a brand’s equity.  i.e. the ability of the brand to deliver value to the company by predisposing consumers to choose the brand over others or pay more for it, based purely on perceptions.


Note: this does not include the proportion of consumers who choose the brand for reasons other than this predisposition e.g. those attracted by price promotions, a particularly prominent display etc.  Such purchases are not due to the brand’s equity and so are removed as part of the process



Calculating Financial Value is a three-step process:
Step 1

We begin with the brand’s parent company, which generates earnings from:
  1. Tangible assets – (assets with a physical form, which include fixed assets - e.g. buildings, machinery, land & current assets e.g. cash and inventory)
  2. Intangible assets (such as patents, trademarks and brands) 

Example - ‘Volkswagen AG’ is a parent company that generates earnings from tangible assets like its manufacturing plants and equipment, as well as its intangible assets - the brand names under which the cars are sold – Volkswagen, Audi, SEAT etc.
To determine the proportion of earnings directly derived from the company’s intangible assets we begin with Corporate Earnings - sourced from Bloomberg, which represent the latest annual earnings reported by the parent company.  Then by using other financial data from the same source, we calculate and apply a metric called the Intangible Ratio.
By multiplying Corporate Earnings by the Intangible Ratio, we are left with Intangible Earnings, which represent earnings derived from intangible assets.

Step 2

Next, we need to determine the proportion of these Intangible Earnings that are directly attributable to the brand we want to value.
To do this we take the Intangible Earnings identified in Step 1 and apply the Attribution Rate, which literally attributes a proportion of the parent company’s Intangible Earnings to the brand we want to value.
The Attribution Rate is determined by analysis of brand level financial information from the parent company’s published financial reports and other credible sources, such as data from Kantar’s Consulting and Worldpanel Divisions.
Once the Attribution Rate is applied to Intangible Earnings, we are left with Branded Intangible Earnings i.e. the proportion of the parent company’s Intangible Earnings that can be attributed to the specific brand in question e.g. this step would attribute a proportion of Volkswagen AG’s Intangible Earnings to Volkswagen, Audi, SEAT etc.

Step 3

The final step is to consider the projected earnings of the brand in question, which measures the brand’s ability to generate earnings in the future and requires the addition of a final component – the Brand Multiple, which is also calculated from financial data sourced from Bloomberg. It’s similar to the calculation used by financial analysts to determine the market value of stocks (Example: 6X earnings or 12X earnings).
When we multiply the Branded Intangible Earnings from Step 2 by the Brand Multiple, we reach the brand’s true Financial Value – i.e. the proportion of the parent company’s $ value that can be attributed to the brand in question accounting for current and projected performance



To arrive at the true value of the brand (i.e. the asset in the minds of consumers) we need to quantify its strength relative to competitors i.e. to isolate the Financial Value that is directly driven by its BRAND EQUITY.  This allows us to understand the proportion of the Financial Value that is explained by the brand alone and hence the total $ value of the brand itself.
A brand’s equity can impact consumer behaviour and contribute value to a corporation in three ways:

  1. Current demand

    based on the strength of its equity alone a brand can influence consumers to choose it over others in the present – generating volume share

  1. Price premium - based on the strength of its equity alone a brand can influence consumers to be willing to pay more for it over others – generating value share and profit
  1. Future demand and price - based on the strength of its equity alone a brand can influence consumers to buy the brand more in future or to buy it for the first time at the desired price – increasing volume and value share in future

Using BrandZ’s unique survey based brand equity model (The Meaningfully Different Framework) we are able to quantify a brand’s abilities in each of these three areas relative to competitors, with a survey based measure:

  1. Current demand = Power
  2. Price Premium = Premium
  3. Future demand and price = Potential

Each of these measures contributes to the proportion of the company’s total value accounted for by the brand’s equity alone – i.e. the BRAND CONTRIBUTION


Brand Value is the $ amount that the brand contributes to overall business value of the parent company.


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 incomplete picture.

What’s missing? The picture of the brand at this point lacks input from the people whose opinions are most important – the consumer. 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 different sources like primary research and panels of experts who contribute their opinions. The Brand Finance methodology employees a complicated accounting method called Royalty Relief Valuation.
Why is the BrandZ™ methodology superior?

BrandZ™ goes much further and is more relevant and consistent. 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, regularly and consistently. Our on-going, in-depth quantitative research includes 3.7 million consumers and more than 165,000 brands in over 50 markets worldwide. We have been using the same framework to evaluate consumer insights since we first introduced the BrandZ™ brand building platform in 1998 which allows historical understanding of the change in brand equity.

What’s the BrandZ™ benefit?

The BrandZ™ methodology produces important benefits for two broad audiences.

  • Members of the financial community, including analysts, shareholders, investors and C-suite, depend on BrandZ™ for the most reliable and accurate brand value information available.

  • Brand owners 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 and fuelling business growth. Since we have been using the same framework to measure these insights, this enables historical and cross-category comparisons.


Get In Touch

David Roth

David is the CEO of the Store WPP
for Europe, the Middle East, Africa
and Asia, Chairman of the BAV
Group, and leads the BrandZ™
worldwide project.

Doreen Wang,

Doreen Wang is the Global Head
of BrandZ™ at Kantar Millward
Brown, and a seasoned executive
with over 18 years experience
in providing outstanding market
research and strategic consulting
for senior executives in Fortune 500
companies in both the US and China.

Halina Bromberg

Halina is the BrandZ Marketing Director
at Kantar where she is responsible for the PR, marketing and communications on the BrandZ™ projects.