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 20/20 Summit

PRN_summit_ads_175x135_ep

This gathering will feature some key influencers and operators in social media, sharing their knowledge and experience in a full day of eye-opening sessions. You will take away practical knowledge to increase the visibility of your brand and expand its reach on social media.

Use code “150off” at checkout.

Get $50 off PR News' Media Relations Guidebook

book-mediarelations-180x150

This 8-chapter resource contains practical implications for some of the most innovative developments in media relations, including the technologies, methodologies and mannerisms that determine the ecosystem in which PR pros practice this essential part of their craft.

Use code “50off” 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.