CONCEPTUAL MODEL FOR SELECTING A BRAND VALUATION METHOD IN THE ASSET ASSESSMENT OF INTERNATIONAL CORPORATIONS

Abstract

This article addresses the methodological challenge faced by international corporations when selecting appropriate brand valuation methods in heterogeneous markets characterized by institutional differences, cultural diversity, and volatile competition. The purpose of the study is to develop a conceptual model and decision matrix that reposition brand valuation from a purely technical calculation to a structured managerial decision aligned with valuation objectives, brand life-cycle stage, and data availability. The research is based on a conceptual synthesis of branding theory and intangible-asset logic and applies a structured analytical approach to systematize valuation practices. The study consolidates ISO 10668 requirements for monetary brand valuation and emphasizes the necessity of clearly defining the valuation object prior to method selection. Three core valuation approaches — income-based, market-based, and cost-based — are systematized with respect to their logic, data requirements, applications, and limitations. The analysis shows that income-based methods are most suitable when identifiable brand-related cash flows exist, though they are sensitive to assumptions; market-based methods offer external validation but are constrained by limited comparables; and cost-based methods provide operational simplicity but fail to capture future economic benefits. The key contribution is a seven-step conceptual model guiding method selection through definition of scope and purpose, assessment of brand maturity and cash-flow capacity, evaluation of data quality and comparables, method selection, and verification. The practical output is a decision matrix linking common corporate scenarios — licensing, mergers and acquisitions, financial reporting, portfolio management, market entry, and internal inventorying — to recommended valuation approaches. The model promotes triangulation through combined use of income, market, and cost perspectives to improve transparency, comparability, and managerial relevance.