Argumentative paragraph by Valentyn Danylyuk

Valentyn Daylyuk

The brand is the most valuable part of the company and it should be taken into account calculating the company price. One reason is that market price of the company is strongly interacted by the price of the brand. Values of the tangible assets of the “Ukrzaliznucja” are estimated in 5 billion EURO, the intangible assets (value of the brand) are estimated in 35 billion EURO[1]. It should be admitted that other wide spread approaches to the company value (the economic value method or the break-up value method) does not take into account value of the brand. However, examples from the market illustrating that company with the strong brand like Coca-Cola or Pringles have preponderating company value than producers with analogical goods without strong brand. Therefore, if company thinks about vista and wants to increase price of the company in future, it should increase value of the brand.

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[1] http://times.liga.net/articles/gs006442.html