Louis Vuitton among the world's most valuable brands according to Forbes
Technology companies continue to dominate Forbes 'World's Most Valuable Brands' list, with Apple unsurprisingly in first place, closely followed by the Microsoft Corporation and Google Inc. Technology stocks took 19 of the 100 spots. Whilst the highest-valued luxury brand was LVMH Moet Hennessy Louis Vuitton SA’s Louis Vuitton, who were recently crowned the most popular brand on Facebook. The new Forbes list almost exactly mirrors Interbrands' recent 'top brand' findings, with Apple also taking the top spot on the October report.
Forbes compiles its top brands list by focussing on the financials of the companies under valuation – rather than consumer feedback. The methodology is based on the belief that brand value translates into the financial performance of a business. The complex evaluation process begins with a selection of over 200 brands that have a significant presence in America. The iconic business magazine then calculates the average of the last three years earnings before interest and taxes (EBIT) to determine the earnings potential of each brand. It then subtracts an 8% earnings charge, "figuring a generic brand should be able to earn at least 8% on this capital."