Valuing a brand

Efforts to obtain measures of brand equity have taken two paths. Some have approached the matter by trying to identify the sources of equity while others have tried obtain a holistic measure. This paper takes the view that, in the absence of a holistic measure, one cannot determine the leverage of the equity components on the brand's overall equity. A method for obtaining a holistic measure of an appropriate price/earnings (p/e) ratio for a brand is presented. The method uses input data readily available to a great many marketers. Its applications to brand management and valuing acquisitions are discussed.