"Brands belong to a different species. While physical resources could be created easily if augmenting financial resources is not a problem, same is not the case of brands. It is advisable to approach the brand valuation

Normally the value of an enterprise could be estimated on a going-concern basis by computing the earning capacity. Net Asset Value method may not be ideal in the cases enterprises with depreciating assets unless the enterprise in question is asset intensive. For instance, in the case of company engaged in real estate sector, the lands in the hands of the company on ownership basis could be a stock in trade and they may be highly valuable. However, in the case of Brands, which form the lifeline of the Company, there has to be a different approach. Cost Approach for valuation of Brands may not help. The cost incurred in the last three financial years are not very high as all resources have been used up for establishing a good quality over a period of time in order to give customers high quality products for value and to ensure that customers are happy. A look at the competitive force and the predominance of the brand of the company would show that the brands of the company are premium brands. In the next phase, the Company would show that the brands of the company are premium brands. In the next phase, the company would incur expenditure brand, returns would be manifold. This enables the company to introduce its branded products in the new markets very easily, as entry barriers could be easily overcome. Considering the above background, it is advisable to approach the Brand Valuation on the basis of Premium Price Method. The commitment of the company to maintain stringent quality gives us confidence in adopting a Premium Price method for valuing the Brand.