Being assess Common to these brand valuation methods is the use of a company’s (weight average cost of capital) capitalization rate to. thereby incorporating calculat risks that do not account for future cash flows or useful life. In addition. when determining cash flows. it must be ensur that an economically reasonable long-term expect growth rate is us after a defin planning period. In addition. according to the standard. the useful life of the brand must be estimat. as possible cash flows beyond the useful life may not be includ.
Calculate discount future cash flows
In the brand valuation. When estimating the Botswana Email List useful life. All cash flows must also be calculat after taxes. taking into account tax benefits associat with depreciation. If these tax benefits are relat. they must be calculat and account for separately. In the brand valuation report. it must be clear that the brand value includes tax benefits. Download List Market Price Bas Procures In market price bas procures. a brand’s valuation is bas on market prices paid for comparable transactions during the relevant time period. Possible synergies and strategic value when selling the brand should be consider here. Market prices at comparable stores must also be modifi using a multiplier to account for potential differences between brands. Comparable brands are those that have similar brand strength.
Trends in the respective industry
Comparable merchandise. and similar School Email List economic and legal situations. Also. it should be consider that this is a realistic estimate and can be realiz as a market price. Cost-Bas Approach In a cost-bas approach. brand valuation is bas on the costs incurr in establishing the brand or replicating it. For this purpose. all expenses necessary to establish and protect the brand or to reproduce it. at market prices. But it must be seen that cost does have an impact on brand value. Costs that do not affect brand equity should not be consider in.