DCF Brand valuation model

David Haigh

The Discounted Cash Flow (DCF) brand valuation model includes six elements. The first of these is segmentation, based on the fact that brands only have value in the context of specific markets, both in terms of product category and geography.

DCF Brand valuation model

David Haigh

The Discounted Cash Flow (DCF) brand valuation model includes six elements:

  1. Segmentation: Brands only have value in the context of specific markets, both in terms of product category and geography.

  2. Market analysis: To understand the market and competitive conditions.

  3. Brand business analysis: A calculation of the earnings of the branded business (economic value added).

  4. Brand analysis: To determine what proportion of earnings is attributable to the brand.

  5. Brand risk analysis:To determine an appropriate discount rate, the risk that the performance of a brand will deteriorate has to be estimated....

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