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 $200 Off PR News' Digital PR Conference

 digitalpr2015-180x150_updated
Join us June 1-3 where you'll hear from top brands such as Walmart, Miami Heat, Verizon and Ritz-Carlton on PR and communication best practices for the next wave of digital trends.

Use code “200off” at checkout to save $200 on the regular rate.

Get $50 off PR News' Book of Employee Communications

employeecommunications-180x150

In this 5th volume of PR News’ Book of Employee Communications, our authors cover more than 45 articles on crisis communications, social media policies, human resources collaboration, brand evangelism and more.

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.