Brand Valuation on the Example of Food Company

This work will discuss the importance of brand valuation. Brand as an intangible asset has become an independent part of a company with its significant value. The key goal is to find the best way of valuating brand as an intangible asset of the company and then compare the results. The main methods are Hirose model, Interbrand model Royalty relief method. Then we compared those results to official brand estimation provided by brand-consulting agency Brand Finance. In this work we will apply these methods to valuate the brand of the Nestle company. Nestle is one of the biggest companies in food industry and its brand is listed in top 100 worldwide. The results showed either systematic overvaluation or undervaluation of the official estimation made by Brand Finance. The possible reasons of this result are the limited access to the data and the usage of historical data rather than forecast. However, the mean of them will give us the close result. This can be the considered in future works.