Brand Valuation Models -- Examples of Dell & IBM

• Main Authors: Yao-Pin Wang, 王耀彬
• Other Authors: Sue Fung Wang
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/27840405674924146807

碩士 === 國立交通大學 === 管理科學學程碩士班 === 91 === The acknowledgement of Brand value is recognized & accepted by most companies. Brand value also be utilizes in various application and also become a most important Asset during the Merge & Acquisition. A lot of consultant firms provide the service for brand Valuation by their own methodology. But most of then still require the widely survey and interview for the acknowledgement of brand and their merchandises and the coverage may extend to globalization. A research to those firms that has carried out the brand valuation exercises was showed 59 percent of them feel only partial benefits from valuation and only 20 percent feel satisfied (Roy and Deborach,2000). This result is not so surprise when the valuation was relay on such widely survey. So this research was based on market approach and acknowledge of the value of brand and merchandises. If customer recognized the brand value then the price different would not impact their decision to purchase the brand merchandises. The firm will get more profit when customer purchased their products. The valuation model developed by this research was established on the price premium of products between the strong brand and weak brand. This research does go through the process of Market price survey, analysis the information, summary the data and match with similar product then come out the Brand Value Added Multiplex ratio. From the result of this research showed the brand Value Multiple ratio for Dell computer is 14.74% and IBM computer is 29.67%. After the calculation the Brand Value with FCF (Free cash Flow) model that showed the Brand value for Dell computer is US$ 8,897 million and IBM computer is US$ 55,831 Million. The research found this Valuation model can be really estimated the Brand value from the market price premium. This valuation model was recommended for who required the information of Brand value more quickly and effective for the business strategy.