Beyond the Balance Sheet: Reassessing the Theory and Practice of Brand Valuation

Brand value has become a critical intangible asset in the contemporary corporate landscape, prompting extensive research into its quantification, particularly since the rise of mergers and acquisitions in the 1980s. This paper provides a comprehensive review of the strategic importance of brands and the principal methodologies used for their valuation. It begins by establishing the fundamental role of a strong brand in cultivating consumer trust, creating a competitive advantage, facilitating financial stability, and commanding premium pricing. The analysis then examines the key factors that constitute brand value, including perceived quality, awareness, association, and loyalty.