Putting a financial value on your brand plan
A VALUE THAT TAKES FUTURE PROFITS INTO ACCOUNT
A brand isn't valuable because of the profits it has made in the past. When the City hold shares in a business, it does so because it expects the company's brands to deliver a stream of profits well into the future.
City analysts have a way of putting a present day value on this long term profitability, which they call Discounted Cash Flow (DCF). Of course, it's impossible to predict with any certainty what future events will have an impact on a brand's success;...