You are using an older browser version. Please use a supported version for the best MSN experience.

The world's most valuable brands 2016

Forbes logo Forbes 17-05-2016 Kurt Badenhausen, Forbes Staff

1. Apple: <p>Brand value: $154.1 billion</p><p>1-year change: 6%</p><p>Company ad spending: $1.8 billion</p> The world's most valuable brands 2016 Click through the slideshow above to see Forbes' 2016 ranking of the world's most valuable brands.

By the numbers:

Forbes has valued the top brands in the world six times over the past seven years and each year the same brand proves to be a cut above. Apple is once again No. 1 at $154.1 billion. We measure the value of a brand by looking at the financials instead of fuzzy consumer surveys. The most valuable brands are ones that generate significant earnings in industries where branding plays a major role.

Top countries: U.S. (52 brands), Germany (11), Japan (8), France (6), Switzerland (4).

Top industries: Technology (17 brands), Financial services (13), Autos (12), Consumer package goods (10), Luxury (8), Retail (8).

Biggest gainers: Facebook (44%), Netflix (31%), Google (26%), Amazon (25%), Citi (19%).

Biggest losers: IBM (-17%), Coach (-13%), Caterpillar (-11%), Siemens (-8%).

New brands in top 100: CVS (#47), BASF (#73), Netflix (#79), Uniqlo (#91), T-mobile (#93), Corona (#95), Costco (#100).

Average one-year gain for top 100: 6%.

Cumulative value for top 100: $1.8 trillion.

Methodology

We started with a universe of more than 200 global brands. We required brands to have more than a token presence in the U.S., which eliminated some big brands like multinational telecom firm Vodafone and Chinese e-commerce giant Alibaba.

Our first step in valuing the brands was to determine revenue and earnings before interest and taxes for each brand. We gathered these from company reports, Wall Street research and industry experts. A tip of the cap to Euromonitor, who provided retail sales figures for certain product brands. Forbes averaged earnings before interest and taxes (EBIT) over the past three years and subtracted from earnings a charge of 8% of the brand’s capital employed, figuring a generic brand should be able to earn at least 8% on this capital.

Forbes applied the maximum corporate tax rate in the parent company’s home country to that net earnings figure. Next, we allocated a percentage of those earnings to the brand based on the role brands play in each industry. (Brands are crucial when it comes to beverages and luxury goods, but less so with airlines, when price and convenience are more important.)

To this net brand earnings number, we applied the average price-to-earnings multiple over the past three years to arrive at the final brand value. For privately held outfits we applied an earnings multiple for a comparable public company. Brands are all in U.S. dollars and converted at April 25 exchange rates.

UP NEXT
UP NEXT


More From Forbes

image beaconimage beaconimage beacon