Brands: The Difficulty of Measuring the Intangible

Although methods for determining the value of a brand have proliferated in recent years, most are a bit flimsy, explains IESE Professor Pablo Fernández in his paper “Valoración de marcas e intangibles” (“Valuation of Brands and Intangibles”). The author analyzes and criticizes the reliability of the methods used by Damodaran, Interbrand, Financial World and Houlihan Valuation Advisors. According to his analysis, the methods are too subjective. Nevertheless, says Fernández, they do have some merit: They help identify which factors influence a brand’s value.

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