Valuation of the Hamrah-e-Aval brand based on brand valuation models using Topsis multi-criteria decision-making model

Abstract

By offering the possibility of accepting the financial value of the brand as a bank guarantee, especially for industries that need constant investment and financing strategies, clear brand value is an advantage in obtaining facilities. The communication industry is among these industries and for this reason, estimation of brand financial value is very important in this industry. Therefore, this study aimed to find a suitable brand financial valuation model using the Topsis method in the mobile phone industry and determine the financial value of the brand of Mobile Telecommunication Company of Iran or Hamrah-e-Aval. This study is an applied and descriptive-survey research. Necessary financial information was collected from the Tehran Stock Exchange, the Company’s financial experts, and related questionnaires. The valuation model was selected using the Topsis method and two models of Intangible Business and Brand Finance were used for the brand valuation of Hamrah-e-Aval. The findings indicate that the difference in values of these models is because of structural differences and each model’s estimations process, and the results are valid. The results of the research’s main model (Intangible Business) indicate that about 78.1% of the stock value (market value) in this company is related to its brand.