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Validation: Use the same currency for all monetary inputs. Values must be 0 or higher. If Brand Contribution is 0, Brand Contribution Value and Brand Value are 0. If Brand Strength Multiple is 0, Brand Value is 0.
Brand Value = (Branded Business Revenue × Brand Contribution %) × Brand Strength Multiple.
The Brand Contribution Value isolates revenue attributable to brand equity. Multiplying it by a Brand Strength Multiple converts that contribution into a capitalised value based on competitive position and risk. Stronger, lower risk brands justify higher multiples.
Why it matters
This frames brand as an economic asset, enabling better trade offs between short term performance and long term equity building.
| Brand Context | Typical Brand Strength Multiple |
| Emerging or niche brand | 1 to 2 |
| Established challenger | 2 to 3 |
| Category leader with strong moat | 3 to 5 |
Example 1: From the inputs above
Branded Business Revenue = ₹50,00,00,000
Brand Contribution = 20%
Brand Strength Multiple = 3
Brand Contribution Value = 50,00,00,000 × 20% = ₹10,00,00,000
Brand Value = 10,00,00,000 × 3 = ₹30,00,00,000
Example 2: Challenger brand case
Branded Business Revenue = ₹80,00,00,000
Brand Contribution = 15%
Brand Strength Multiple = 2.5
Brand Contribution Value = 80,00,00,000 × 15% = ₹12,00,00,000
Brand Value = 12,00,00,000 × 2.5 = ₹30,00,00,000
Interpretation: Despite lower contribution, scale plus a mid range multiple yields strong brand value.






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Answers to Frequently Asked Questions
Brand Value = (Branded Business Revenue × Brand Contribution %) × Brand Strength Multiple.
Estimate revenue attributable to the brand using Brand Contribution %, then multiply by a Brand Strength Multiple that reflects leadership, growth, and risk.
Use research signals such as preference versus parity, price premium, loyalty, and share of search. Start conservatively if unsure.
Consider leadership, market share, differentiation, growth prospects, volatility, and legal risks. Stronger, lower risk brands justify higher multiples.
No. The calculation is ratio and multiplication based. Use the same currency across inputs.
Annually or after major events such as rebrands, product launches, funding, or market shocks.
No. Other approaches include cost and market methods. The income approach here is a practical, comparable method for planning purposes.