For specific evaluation methods, we can generally consider the company's costs, profits, market value, etc. Generally speaking, for the current corporate brand evaluation in our country, we can focus on the following methods: For a For a corporate brand, the original cost of its assets occupies an irreplaceable and important position. Therefore, our evaluation of a corporate brand should start from the full original value of the purchase or development of the brand assets, as well as consider the cost of brand redevelopment and the value of various losses. There are two different aspects to consider. For this reason, the former method is also called the historical cost method, and the latter method is also called the replacement cost method.

The most direct way to evaluate a brand is to calculate its historical cost, and the historical cost method considers valuation based directly on the entire original value of the acquisition or development of the corporate brand assets. The most direct way is to calculate the investment in the brand, including a series of expenses such as design, creativity, advertising, promotion, research, development, distribution, trademark registration, and even patent application fees dedicated to creating the brand. For a brand, its success is mainly due to the cooperation of all aspects of the company, and it is difficult to calculate the true cost. Because we have included these expenses into the product cost or period expenses, how to distinguish these expenses is a troublesome matter, and the quality and results of the investment have not been examined. Even if it can, the historical cost method has a maximum The problem is that it doesn't reflect the current value. Because it fails to take into account the quality and effectiveness of past investments. Using this approach, failing or less successful brands will be overestimated. Therefore, the main problem in applying this method is how to determine which costs need to be taken into account. For example, the calculation of management time expenses is necessary, and the specific calculation method is a difficult problem. Additionally, this approach does not capture the brand’s future profitability.

The replacement cost method mainly considers factors: brand replacement cost and newness rate. The product of the two is the brand value. Replacement cost is the money a third party is willing to pay, which is equivalent to the cost of re-establishing a brand new brand. Depending on the source channel, the brand may be self-made or outsourced. The composition of their replacement costs is different. Due to the constraints of the accounting system, corporate self-created brands generally have no book value, so the total replacement price can only be estimated based on current expenses. The replacement cost of an outsourced brand is generally calculated at high speed using the price index based on the book value of a reliable brand. The renewal rate reflects the ratio of the brand's current value to its brand-new replacement value. Generally, expert appraisal method and remaining economic life prediction method are used.

The basic calculation formula of the replacement cost method is:

Brand evaluation value = brand replacement cost Ⅹ newness rate

Where:

Brand replacement cost = original book value of the brand Ⅹ (price index at the time of evaluation ÷ price index at the time of brand purchase)

Brand renewal rate = remaining useful life ÷ (remaining useful life after use) Ⅹ100

One of the biggest disadvantages of using this method is that it is very unlikely to re-simulate and create a brand that is the same or similar to the brand being evaluated, and it is not feasible. The reason is simple, it's a waste of time. Because the creation of a brand is affected by many factors.

In addition, when evaluating a brand, more emphasis should be placed on its value rather than its cost. Moreover, the cost method does not take market competitiveness as the object of assessing brand value. Therefore, now, the cost method is rarely used to evaluate brands. This method is the most convenient method in asset evaluation. Nowadays, some people also apply it to brand evaluation. It uses market research to select one or several brands that are similar to the evaluated brand as the comparison object, and analyzes the comparison object. Compare the transaction prices and trading conditions to quickly estimate the brand value. Reference data include market share, popularity, image or preference, etc. To apply the market price method, two prerequisites must be met. First, there must be an active, open, and fair market; second, there must be a recent, comparable transaction comparison.

The biggest difficulty with this method is execution, because different market definitions will result in different market shares, and the brand’s profitability, market share, popularity, repeat purchase rate, etc. Factors are not necessarily related. Although these market data are valuable, they are not very useful in calculating the financial value of the brand. At the same time, my country currently does not have a market for brand transactions. Successful brand transactions are only the result of negotiations between buyers and sellers, and the implementation license and use rights transfer of a certain brand are not significantly affected by other brand transactions. The reference of the assets being evaluated and Comparable indicators and technical parameter information are also quite difficult, and no one is specialized in this kind of work. This makes it almost impossible to use market price measurement method to evaluate the value of a brand at present. The income method, also known as the income present value method, determines the brand value by estimating the expected future income (usually the "after-tax profit" indicator), converting it into the present value using an appropriate discount rate, and then adding up the sum. method. The main influencing factors are:

①Excess profit;

②Discount coefficient or principalization rate;

③Earning period.

It is currently the most widely used method, because for the owner of the brand, future profitability is the real value, trying to calculate the future earnings or cash flow of the brand. Therefore, this method is usually based on the brand's revenue trend and discounts it with the future annual budget profit. Specifically, it first formulates a business volume (production volume or sales volume) plan, then calculates the revenue based on the unit price, and then deducts costs and expenses. Profit, finally discounted and added up.

In the evaluation of a brand's future earnings, there are two independent processes. The first is to isolate the brand's net earnings; the second is to predict the brand's future earnings.

The brand value calculated by the income method consists of two parts. One is the terminal value of the brand in the past (the total value of income generated in a certain period of time in the past), and the other is the present value of the brand in the future (a certain period in the future). The sum of the value of the revenue generated over the time period). The calculation formula is the addition of these two corresponding parts.

However, the problems with the income measurement method are: first, although it pays attention to the factors of brand competitiveness when estimating cash flows, it does not consider the changes in external factors that affect income, so it cannot Taking into account the excellent new products developed by competitors, and we cannot separate the future cash flow of the evaluated brand from the cash flow of other brands of the company, because they share the same production and distribution resources; the second is The selection of discount rate and time period is highly subjective; thirdly, in the current situation, there is no market power factor to evaluate the brand. This method was proposed by David Icke. He divided the many factors involved in the brand into 5 groups and 10 categories, and made a new synthesis, thus proposing the "Ten Key Index Systems for Brand Equity Assessment." The evaluation system takes into account two sets of evaluation criteria: brand strength indicators based on long-term development, and short-term financial indicators. The first four groups represent consumers' perception of the brand, which is based on brand equity. The four aspects are: loyalty, quality perception, association, and popularity. The fifth group is two market conditions, and the delegation comes from the market rather than consumer information.