The club has changed dramatically in the last 10 years, with only Microsoft and Google holding on to their spots among the world’s top brands.
The post What COVID-19? World’s 5 most valuable brands are up 54% appeared first on Motley Fool Australia. –
In a world where share markets increasingly ignore traditional financial metrics to figure out the worth of companies, brand value has never been more important.
But even a quality as ethereal as brand value can be measured.
Each year, United States consultancy, Interbrand, publishes a list of the top 100 brands in the world.
Clare Capital analyst, Robin Basra, said the rankings are calculated as a combination of three attributes – financial forecasts, the role of the brand and the strength of consumer preference for the brand.
And the world has dramatically shifted to technology over the past 10 years.
“A decade ago, Coca-Cola Co (NYSE: KO), IBM (NYSE: IBM), Microsoft Corporation (NASDAQ: MSFT), Google (Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG)) and General Electric Company (NYSE: GE) represented the most valuable brands in the world,” said Basra.
“In 2020, Google and Microsoft retain their positions, Apple Inc (NASDAQ: AAPL) has replaced IBM as the most valuable technology brand, and the others have fallen lower down the order – signalling changing dynamics and consumer preferences.”
Another nod to the way the globe is shifting is that a non-American company, Samsung Electronics Co Ltd (KRX: 005930), snuck in at fifth place.
Valuable brands outperform rest of share market
This brand value thing matters on the stock market.
In a year when most publicly listed companies were hammered by COVID-19, the share prices of the five most valuable brands were up 54% on average.
Even when generalised out to the 100 most valuable brands, their collective share price has outperformed the S&P 500 Index (SP: .INX) by more than double.
|Top 5 brands||2010 rank||Age (years)||2020 brand value (USD)||Brand value multiple 2010 to 2020||Revenue multiple 2010 to 2020||Share price change in last 12 months|
|1. Apple Inc (NASDAQ: AAPL)||17||43||$323 billion||6.1x||7.1x||80% up|
|2. Amazon.com, Inc
|36||26||$201 billion||8x||4.6x||78% up|
|3. Microsoft Corporation (NASDAQ: MSFT)||3||45||$166 billion||9.5x||10.8x||47% up|
|4. Alphabet Inc (NASDAQ: GOOGL)||4||22||$165 billion||6.6x||6.4x||37% up|
|5. Samsung Electronics Co Ltd (KRX: 005930)||19||82||$62 billion||4.7x||1.5x||27% up|
|Source: Clare Capital. Table created by author|
Most valuable brands by sector
The brand leaders for each sector have also shown healthy share price growth.
The exception is Toyota Motor Corp (TYO: 7203), which perhaps isn’t surprising considering the economic downturn.
|Sector||Most valuable brand||Age (years)||2020 brand value (USD)||Share price change in last 12 months|
|Technology||1. Apple Inc (NASDAQ: AAPL)||43||$323 billion||80% up|
|Beverage||6. Coca-Cola Co (NYSE: KO)||134||$57 billion||2% up|
|Motoring||7. Toyota Motor Corp (TYO: 7203)||87||$52 billion||4% down|
|Apparel||15. Nike Inc (NYSE: NKE)||56||$34 billion||41% up|
|Luxury||17. LVMH Moet Hennessy Louis Vuitton SE (EPA: MC)||97||$32 billion||26% up|
|Source: Clare Capital. Table created by author|
Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
*Returns as of 6/8/2020
- Better buy: Apple (NASDAQ:AAPL) or every Dow Jones stock?
- Here are the shares Magellan has been buying recently
- What has Warren Buffett been up to lately?
- Why the Dubber Corp (ASX:DUB) share price is surging today
- Tesla (NASDAQ:TSLA)’s ‘Teslaquila’ tequila sells out in hours
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Tony Yoo owns shares of Alphabet (A shares) and Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, and Nike and recommends the following options: long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Nike. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post What COVID-19? World’s 5 most valuable brands are up 54% appeared first on Motley Fool Australia.