BrandZ Brand Valuation Methodology

Why brand valuation matters

Brands are powerful, intangible assets that drive business growth by influencing consumer choice, price premium and future demand. Quantifying brand value enables companies, investors and marketers to make informed decisions, benchmark performance and celebrate achievements in the boardroom.

What makes Kantar BrandZ’s methodology unique

Kantar BrandZ’s brand valuation methodology sets itself apart by combining ongoing, in-depth global consumer research with rigorous financial analysis to reveal the absolute dollar value a brand contributes to its parent company. This value is determined by multiplying a brand’s Financial Value, the proportion of the total US dollar value of the parent company that can be attributed to the brand in question (considering both current and future performance) by its Brand Contribution. This quantifies the proportion of this Financial Value that is driven purely by brand equity, as measured through the globally accredited Meaningful Different and Salient framework (MDS).

Summary: BrandZ’s brand valuation methodology

• Kantar BrandZ’s methodology uniquely combines ongoing global consumer research with rigorous financial analysis to determine the absolute dollar value a brand contributes to its parent company

• Brand Value is calculated by multiplying Financial Value (the share of a parent company’s total worth attributable to the brand, based on earnings and future projections) by Brand Contribution (the proportion driven purely by brand equity)

• Brand Contribution is measured using Kantar’s Meaningful Different and Salient framework (MDS), which is globally validated by the Marketing Accountability Standards Board (MASB)

• Over 4.5 million consumer interviews across 54 markets and 22,000 brands inform the rankings

Key Facts

Attribute	Value
Framework	Meaningful, Different, Salient (MDS)
Accreditation	MASB (Marketing Accountability Standards Board)
Coverage	4.5M+ interviews, 538 categories, 22,000 brands, 54 markets
Financial Data Sources	S&P Capital IQ, public financial reports
Inclusion Criteria	Publicly listed or unicorn brands with public valuations

How Kantar BrandZ’s brand valuation works

Step 1: Calculating Financial Value

To determine a brand’s Financial Value, Kantar BrandZ starts with the parent company’s latest annual earnings, sourced from S&P Capital IQ. We then apply an ‘intangible ratio’ to isolate the portion of earnings generated by intangible assets, such as patents, trademarks, and brands. Next, an ‘attribution rate’ is used to assign a proportion of those intangible earnings to the specific brand being valued. Finally, we multiply these branded intangible earnings by a ‘brand multiple’ – similar to stock market multiples – to project the brand’s future earnings and establish its true Financial Value.

Step 2: Determining Brand Contribution

Brand Contribution quantifies how much of a brand’s Financial Value is driven purely by brand equity: that is, the extent to which the brand alone predisposes consumers to choose it or pay more for it, based on their perceptions. Brand equity is measured using Kantar’s Meaningful Different and Salient framework, which assesses a brand’s Demand Power (current demand), Pricing Power (ability to command a price premium), and Future Power (potential for future demand). The MDS framework is globally validated by the Marketing Accountability Standards Board (MASB).

Step 3: Calculating the final Brand Value

Brand Value is calculated by multiplying a brand’s financial value by its brand contribution. This figure represents the dollar amount that the brand alone adds to the parent company’s overall business value, clearly isolating the impact of brand equity from all other factors.

Frequently Asked Questions

What makes Kantar BrandZ’s methodology unique?

Kantar BrandZ’s methodology stands out for its deep integration of consumer insights with financial analysis. This consumer-centric approach provides a more nuanced and actionable valuation, making it particularly valuable for companies looking to understand and leverage their brand’s impact on consumer behaviour and market performance.

How is brand equity measured?

Through the MDS framework: Meaningful (meeting emotional and functional needs), Different (sets trends), and Salient (comes to mind for key needs), quantified via global surveys.

Can I check my brand’s equity?

Yes, Kantar BrandZ brand equity data is available to view either through your Kantar client service team, or using BrandSnapshot, available on Kantar Marketplace.

What are the inclusion criteria for BrandZ’s brand valuation rankings?

• Brands must be owned by a publicly listed company
• Privately owned brands must have reliable, verifiable financial information available from credible sources
• Unicorns must have a publicly available valuation

How does Kantar BrandZ ensure objectivity?

By using independently sourced financial data and a globally validated, MASB-accredited consumer equity model.

How often is the methodology updated?

The methodology is reviewed annually to reflect best practices and market changes.