Brands and market capitalization
For many Western companies, a large part of their intangible assets are related to the value of their brands. An examination of the market capitalization of companies on Western stock exchanges demonstrates that a large proportion of the company value is derived from powerful brands and the profit streams they provide.
On the New York Stock Exchange and NASDAQ, intangible assets are known to account for between 50-75% of the market capitalization of the listed companies, where the majority is accounted for by their brands. The market-to-book ratios for Fortune 500 companies are approximately 3.5 which indicate that more than 70% of the market values of the Fortune 500 companies are comprised of intangible assets.
Similarly, the market-to-book ratio for UK's largest companies averages three. Compare that with companies on any Asian stock exchange where the intangible financial value derived from brands is insignificant or lacking.
On the New York Stock Exchange and NASDAQ, intangible assets are known to account for between 50-75% of the market capitalization of the listed companies, where the majority is accounted for by their brands. The market-to-book ratios for Fortune 500 companies are approximately 3.5 which indicate that more than 70% of the market values of the Fortune 500 companies are comprised of intangible assets.
Similarly, the market-to-book ratio for UK's largest companies averages three. Compare that with companies on any Asian stock exchange where the intangible financial value derived from brands is insignificant or lacking.
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