Reputation Drives Brand Valuation


Corporate reputation plays a key role in shaping valuations and shareholder perceptions of companies, says a global study. Consultancy Bestra calculated this area contributes almost $667 billion in shareholder value to firms in the Financial Times Stock Exchange (FTSE) 350, approximately 30% of the group’s market capitalization. Other findings include:

• The top three performers based on Bestra’s methodology include energy giant Royal Dutch Shell, whose reputation delivered 52.1% of its value, beating manufacturer Unilever (52%) and natural gas expert BG Group (49.9%).

• Among the top 10, reputation made up 48% of shareholder value, equivalent to $330 billion.

• Reputation assumed the greatest significance in the oil and gas sector, supplying 51.2% of capitalization, slipping to 30.4% for basic materials, 27% for healthcare and 24.5% for consumer goods.

• Bestra’s report notes that at the height of the recession, long-term value, product quality and financial soundness were essential, while CSR was viewed negatively. Now, quality of management, quality of goods and services and “environmental and community responsibility,” likely brought on by BP’s problems, are recognized as key reputation drivers.

Source: Bestra




Comments Off

Deals of the Week

Get $150 Off PR News' Social Media Summit with Taste of Tech

prn_ms_175x135_ep

Unlike other conferences, you’ll be immersed in the strategies and tactics that you can apply right away to your work as a communicator. You’ll learn what it takes to compete for attention, engagement and positive brand awareness across an array of social media networks.

Use code “150off” at checkout.

Get $50 off PR News' Digital PR & Social Media Guidebook

DigitalPRSocialMedia_PrintDigital_vol6

This guidebook has one essential purpose: helping you maximize your communications effectiveness in the digital world. The articles in this guidebook produced both by the PR News staff and more than fifty communications industry thought leaders, focus on most every facet of digital PR and social media.

Use code “DIGITAL6” at checkout.

Save $100 on a PR News Subscription

Let PR News become your weekly, go-to resource for the latest PR trends, case studies and tip sheets. Topics covered include visual storytelling, social media, measurement, crisis management and media relations.

Use code “SUBDEAL” at checkout.

Comments are closed.