Intangible assets represent a significant share of corporate market value of which brand is the largest component.
In this paper, we study how investors can use brands as a determinant in their investment strategy to improve a portfolio’s ESG performance and achieve higher risk-adjusted returns.
Today intangible assets represent a significant share of a business’ market value. In 2015, 84% of S&P 500 companies’ market value resided in intangible assets.
Brand is a vital component of this intangible asset value, representing on average 19.5% of the enterprise value of S&P 500 companies.
In this study, we have used the Brand Value Index as a proxy indicator to determine how companies with a strong brand value performed and whether they achieve higher returns overall.
Note to the reader:
The Smart Cube is a provider of bespoke research and research support services. We do not offer trade execution, brokerage, investment advice, portfolio management or any related services and are not a regulated entity under any market regime. As such any content is purely indicative of services we can provide and should not be considered an inducement of any sort under MiFID II.