Apple Inc. “topped our ranking of the world’s most valuable brands. Worth $57.4 billion by our calculation, Apple’s brand squeaked by longtime nemesis Microsoft ( MSFT – news – people ), worth $56.6 billion. Google came in fifth with $39.7 billion,” Kurt Badenhausen reports for Forbes.
“Apple shows how a brand can survive and thrive even when a parent company stumbles. Apple’s sales plummeted 46% over a four-year stretch in the late 1990s. The stock was trading for less than $4 (split-adjusted) in 1997 before cofounder Steve Jobs, who had been ousted, rejoined the company. The following year Apple released the iMac and has gone from one consumer success to another ever since,” Badenhausen reports. “Revenue over the past 12 months was $57 billion, net income $12 billion.”
“To identify the world’s most valuable brands, we looked at more than 100 with leadership positions in their industries,” Badenhausen reports. “With help from Jeffrey Parkhurst, managing director of business strategy at Mindshare, a WPP-owned media agency, we valued the brands by looking at brand earnings over the past three years, subtracting a charge for the capital employed and then taking a percentage of earnings based on the role brands play in each industry. We applied the average price-to-earnings multiple of the parent company to the net brand earnings number to arrive at a brand value.”
Badenhausen reports, “Tech brands make a big showing on the list with 30% of the top 50. U.S. brands dominate.”
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