Brand name of a product has certain value to a company. How do we value a brand and how does it affect the fair value of a common stock? There is no definite way of doing it since a brand is worth more to some than to other people.
Brand is valued in the balance sheet under 'Intangible Assets' or 'Goodwill'.. Each company values their brand differently but they all agree that brand name has certain value.
What is the best way to value a brand? Nobody knows for sure. One can only give his reasoning and then value the brand accordingly. Here Wholesale Larry Nance Jr. Jersey , I will explore the possibility of valuing a brand based on asset value and based on the value of the common stock.
Let's use a familiar brand name. Coca Cola Company (KO) has one of the most valuable brand in the world under the Coke brand name. How much is it worth? We can go to any grocery stores to verify. Grab a bottle of Coke and a bottle of generic cola. What is the price difference? We can argue that the price difference is due to the Coke brand name. Let's assume a price difference of 10 cents. Let's assume that Coke sold 1 Billion bottles of Cokes each year. This implies an additional $ 100 Million due to value of Coke brand. What is the fair value of a brand? Assuming a 7.5% yield (PE of 13.4), the value of Coke brand is $ 1.34 Billion.
Please note that this is a very rough estimation of brand value . We just assume the same 10 cents product differential everywhere. Coke sells to almost every corner of the world and the price differential is not always 10 cents every time. Furthermore, as you may know Wholesale Jordan Clarkson Jersey , if Coca Cola is not selling that much Coke this year, the value of the brand will drop and vice versa. Therefore, the value of the Coke brand will fluctuate depending on the sales of the product. Supply disruption will result in lower sales. If there is a disruption in supply Wholesale Josh Hart Jersey , which has nothing to do with brand value, the value of the brand will decrease as well.
Should we care about the value of a brand when investing in the stock? Yes and No. Yes, if you are valuing the company on the basis of asset value. If the value of the brand is a significant part of the balance sheet Wholesale Corey Brewer Jersey , then you should include it to value the overall net asset of the company. If a stock is traded at $ 10 per share while the net book value with the brand value included is $ 15 per share, then investors might profit by buying the stock at $ 10 per share.
For our version of fair value, valuing a brand name is not necessary. This is because the fair value of a common stock is correlated with the profits generated by the company. What is the brand name of Enron when it cannot produce a profit under this scenario? Zero. In general Wholesale Lonzo Ball Jersey , we should not care much about the value of a specific brand. All we are trying to do as investors is to buy undervalued investments. We should compare the profit generated by the company with the price of the common stock, not with the value of the brand.
Usually, people would talk about this topic in hushed tones because it is something somebody they know went through. And then there are also those times when people would talk about this in really high voices because they just could not agree if this is supposed to be right or not. These are the situations that arise when people talk about abortion. And even in abortion Virginia centers Wholesale Kentavious Caldwell-Pope Jersey , such happen. And it does not matter if you have gone to a free abortion Virginia clinic or otherwise. So what is abortion really?
Well, what most people really do debate on is the induced abortion. Induced abortion is actually the process or the procedure in which the fetus is actually taken out or eliminated from a woman鈥檚 womb. This procedure or process is actually done through medicine or through surgery. This is actually stimulated and that is why it has become quite a hot topic for debate.
You can go to any abortion Virginia clinic to get thoughts on the topic and learn about the two types of induced abortion. The first one is known as therapeutic abortion and this is when a doctor or someone in the medical field has recommended that a woman goes through abortion. This usually happens when the mother鈥檚 life is in danger or the pregnancy brings about harm to the woman鈥檚 health. Now, the second one is known as elective abortion and it is when a woman wants to get rid of her pregnancy. This usually is because of personal reasons rather than medical reasons.
Elective induced abortion is actually something personal and the decision lies in the hands of the mother. There are various reasons for this and the most popular is that she just is not ready to have a child. In the United States alone Wholesale Kyle Kuzma Jersey , this procedure is actually one of the most popular medical procedures among all other procedures. Plus, a huge amount of women, amounting to almost 40% Wholesale Dennis Rodman Jersey , go through this nevermind the abortion Virginia costs.
Who usually goes through abortion? Well, according to statistics, young women are the ones who go through such. This is usually due to unplanned or unwanted pregnancies. A young woman may find herself in a situation where a pregnancy or a baby just is not going to work out. She would have to choose between something she is doing and her pregnancy. For most young women Wholesale Jamaal Wilkes Jersey , the answer is always to choose what she is currently doing. She believes that the pregnancy can be terminated and she can always get pregnant in the future if she wants to.
Another reason why young women choose to have abortion is because they would not want to have a child even if they are not still married. They would rather end the pregnancy than become a single mother. Despite the costs of abortion Virginia, there are still plenty of women who would choose to have an abortion because of these two very popular reasons. You can still find a list of other reasons why they would choose such a procedure.