Brand valuation is a process used to determine the monetary value of a brand. It involves assessing various factors such as brand awareness, brand loyalty, and brand reputation to calculate the financial worth of a brand.
One of the commonly used approaches is the income-based approach, which estimates the future economic benefits derived from the brand. Another approach is the market-based approach, which compares the brand to the price of similar brands in the market.
Additionally, the cost-based approach evaluates the costs incurred in building and maintaining the brand. Professional firms specializing in brand valuation use these methods to provide insights for business decision-making.