What Is a Brand Valuation Template?

A brand valuation template is a tool that helps you determine brand value as an intangible asset. It may be either a business valuation calculator or an Excel template. Such an approach helps businesses better understand the strengths and weaknesses of a brand.

Using a brand valuation template, you can assess your company’s value across multiple dimensions. Like other business valuation methods, a brand valuation template in Excel can help you attract potential investors, lenders, or banks to fund your business. It can also help you analyze revenues and calculate the terminal value for a fair price. Likewise, by exploring each of these dimensions in detail, you’ll be able to identify areas where you can create a competitive advantage and find creative ways to add value that stands out from the rest.

How to Use this Brand Valuation Template in Excel?

This Brand Valuation Template applies the discounted cash flow formula or Net Present Value (NPV) calculation. At the same time, it uses the Gordon Growth Rate Model to determine the Terminal Value. You will see two sheets in this Brand Valuation template:

Sheet 1 is an Example Sheet
Sheet 2 is the Template Sheet

The cells are color-coded.

Cells in blue represent assumptions. These cells contain assumptions that are not linked to other assumptions.
Cells in light blue are assumptions linked to a blue assumption. These cells contain assumptions that are linked to other assumptions. They can either be left “as is” or overwritten as needed.
Cells in black are links and calculations. These cells contain links or calculations. Do not change them unless you want to change the logic of the model.

Assumptions or Input

You will need to input the following ASSUMPTIONS in the template sheet:

Currency
Valuation Date
Date First Financial Year End
Discount Rate
Income Tax Rate
Annual Revenue
Royalty Rate

Example Sheet

Please note that we have used a fixed annual royalty rate of 5% in the example sheet. But you can vary this per year as needed. The same applies to revenues, though we used a fixed growth rate.

Calculations or Output

This Brand Valuation Template will show the following CALCULATIONS or OUTPUT such as:

Annual Royalty Income
Annual Taxes
Annual Free Cash Flow to Firm
Terminal Value (TV) at Year 30
Annual Free Cash Flow to Firm inclusive of TV
Annual PV of Cash Flow
Brand Value based on Net Present Value (NPV) of expected future Free Cash Flows from the Brand

Compare the Results to Determine the Most Solid Investment.

Like an NPV Calculator, the bottom of the template shows the net present value, where you can analyze the profitability or viability of the asset, brand, company, or project. The results in this example sheet show a positive NPV of $100,000, representing the current value of the brand’s expected future cash flows.

If you consider partnering with a brand and have several potentials in mind, you can run different calculations using relevant assumptions. Banks, lenders, and investors use similar analyses for the valuation of an asset, brand, company, or project.

From a financial point of view, the brand that yields the highest NPV is the most-worthy investment.

Why Use this Brand Valuation Template?

This Brand Valuation Template is fully editable and very simple. All you need to do is enter the required input, and this Excel model auto-calculates the output. You can edit the assumptions as you need to compare different brand agreement scenarios and terms. Making a financial decision is simple. You can compare scenarios and similar brands to rank potential tie-ups and get the best investment for your business.

Download This Brand Valuation Template Today!

Overall, valuing a brand using the NPV template is a complex process that requires a thorough understanding of the brand’s financial performance, market dynamics, and other relevant factors. However, it can provide valuable insights into the brand’s value and help guide investment decisions.

This Brand Valuation Template can help you get an accurate and detailed view of a brand’s overall value. So, make informed decisions about the direction of their brand and lay the foundation for long-term success.

Model version 1.0 is available in a fully editable Excel version.

File format
.xlsx (MS Excel)