1、How Brand ImpactsShare PriceInterbrandHow Brand Impacts Share Price0267%of companies in the S&P 500 may be inaccurately valued due to the misunderstanding of one key business asset.03Complementing a quarter of a century of proprietary brand valuation data with new research,Interbrand demonstrates th
2、at 67%of companies in the S&P 500 may be inaccurately valued.This new finding began with a simple observation:business brand growth and earnings potential arent always reflected in a companys public share price.Individual brands price-to-earnings(P/E)ratios are not consistently performing against pe
3、ers or are experiencing high volatility,signaling stock may be improperly valued.A disconnect exists between the companies performance and the investment communitys analysis of their brands.However,we havent just identified the problem.Through analysis of over 500 companies P/E ratio over a five-yea
4、r average and primary research within the investment community,weve identified a powerful driver that can potentially shift the balance,changing investor understanding,and thereby bringing earned value back to a companys share price.Best of all,its an asset that companies already have the power to l
5、everage or strengthen:their brand.Interbrand,the worlds leading brand consultancy,progressed business valuation by bringing a tangible number to the seemingly intangible asset of brand value,defined by the combination of financial performance,the role of brand in driving choice and brand strength,wh
6、ich measures the ability of the brand in creating demand and reducing risk.What was once an unknown is now a recognized strength,and we are again bringing our new findings to the business world.The investment community of analysts and journalists today sees the influence of brand on valuation,with b