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Estimate value of brands for Cadbury Schweppes

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What approaches would you use to estimate the value of brands? What assumptions underlie these approaches? As a financial analyst, what would you use to assess whether the brand value of 1.575 billion pounds reported by Cadbury Schweppes in 1997 was a reasonable reflection of the future benefits from these brands? What questions would you raise with the firm's CFO about the firm's brand assets?

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The expert estimates the value of brands for Cadbury Schweppes.

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Approaches to Estimate the value of brands:

There are four main approaches that can be utilized to estimate the value of brands in an organization. These methods include the economic approach, the income approach, the cost approach and the market approach. The economic approach is also known as the earning valuation approach in some companies. This method estimates the value of the brand through comparing the potential of earning the company can get from the assets and how this will impact the valuation of the company. The valuation of the company is normally based on the free flow of cash from assets in the future (Rodrigues, 2006).

The income approach is the method that analyses the amount of returns intangible assets of a company yields. Here, the method estimates the amount of returns that the assets will yield in the future and when the organization ...

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