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Published by Unai Admin

18/07/2025

Global Intangible Value Exceeds US$50 Trillion for the First Time

Global intangible value has surpassed US$50 trillion for the first time in history, reaching US$57.3 trillion at the beginning of the current financial year, according to the latest Brand Finance Global Intangible Finance Tracker (GIFT™). This constitutes 52% of the overall enterprise value of all publicly traded companies worldwide, which now amounts to an equally record-breaking US$109.3 trillion, exceeding the US$100 trillion mark also for the first time. Worryingly, however, 76% of the world’s intangible value – US$43.7 trillion – remains unaccounted for on balance sheets. At US$35.0 trillion last year, undisclosed intangible value has grown by a whopping 25% year on year – five times faster than the value of disclosed intangible assets (up 5%) – and outpacing by far the overall global enterprise value growth (up 18%). The past year has also seen a decline in the granularity of intangible asset reporting as the gap between disclosed intangible assets – accounted for in detail on balance sheets – and goodwill has widened dramatically. Goodwill is a premium paid over the fair value of assets in the event of a company being purchased and is sometimes used as a shortcut to avoid performing a more granular valuation of intangibles. Companies now list a stunning US$2.3 trillion more goodwill than disclosed intangible assets, compared to US$1.8 trillion last year. David Haigh, CEO of Brand Finance, commented: “Insufficient reporting of intangible assets leads to a host of problems for analysts, investors, boards, and stakeholders. With little information on particular assets, analysts’ assessments are not as accurate, forcing investors to act with one eye closed. This, in turn, has negative effects on share price volatility, affecting the stability and sustainability of finance. Equally, the lack of granular information on the true value of assets leaves boards and shareholders prone to hostile takeovers or selling and licencing individual assets below competitive prices.” Teresa de Lemus, Managing Director of Brand Finance Spain, commented: “In Spain, intangibles account for 36% of total business value with slightly over 40% undisclosed ¡ (15% of the total). This is less than the global average and partly shows that the dominant sectors in Spain tend to be more dependent on tangible assets. Given the value of all publicly listed Spanish companies has not yet reached its pre-crisis peaks, it seems evident that better managing intangible assets –in particular tech and marketing IP – will help Spanish companies grow faster in the new digital economy.” Ángel Alloza, CEO of Corporate Excellence- Centre for Reputation Leadership, commented: “Year after year we see an increase in the presence of intangible resources as opposed to tangibles when we talk of an organization’s total value, as this study clearly indicates”. Also claims that “organizations have become aware of the importance of managing these resources due to the fact that, among other things, they need to be part of a society that is increasingly demanding and concerned about its future. Citizens and consumers expect businesses to hold an active part in the world they live in and to make a positive impact in it”. For the general manager of this think tank “an organization’s value will depend on its support of adequate management of their intangible resources”. Intangible assets (such as brands, relationships, know-how) make up a greater proportion of the total value of many businesses than tangible assets (such as plant, machinery, and real estate). However, current financial reporting rules allow intangible asset disclosure only during M&A activity, resulting in no knowledge of the worth and business importance of intangibles unless they are subject to an acquisition. David Haigh, CEO of Brand Finance, commented: “A commitment to undertake an annual revaluation of all company assets, including tangible assets, acquired intangibles, and intangibles generated internally, would be a boon for boards, accountants, investors, and analysts. Newly-gained transparency and clarity would enable boards to make more effective use of their assets, accountants to have a more detailed picture of asset values, and investors and analysts to more accurately price shares.” According to Brand Finance’s survey of financial analysts, conducted in 2016, the majority backs this demand for an annual revaluation of all intangible assets (73%), including the full disclosure not only of acquired intangibles (79%) but of all internally generated ones too (68%). The problem is best highlighted by the stark disparity between the list of the world’s top 100 most intangible companies and an equivalent list ranked by disclosed – as opposed to total – intangible value. Amazon (with intangibles worth US$827 billion), taking over as the most intangible company in the world, as well as last year’s leader Apple (US$648 billion) do not even make the list of top 100 companies by disclosed intangible value. Their intangible value remains undisclosed at 98% and 99% respectively. The Internet & Software sector, where Amazon is joined by other digital giants such as Alphabet and Alibaba, has a very high percentage of enterprise value attributable to intangibles overall (87%), placing it just behind the Cosmetics (90%) and Aerospace (90%) industries. It also has the second-highest absolute intangible value among all sectors of the economy, at US$6.8 trillion, behind only Banking’s US$8.5 trillion. Despite this exposure to intangible value, Internet & Software is among those sectors which account for a very low value of their intangibles, reporting just 9.1% in goodwill and disclosed assets. About Brand Finance GIFT™ The Brand Finance Global Intangible Finance Tracker (GIFT™) is the world’s most extensive annual research exercise into intangible assets, considering 58,000 publicly quoted companies (with a total value of over US$100 trillion) across 179 jurisdictions. In its analysis, the Brand Finance GIFT™ 2018 report provides detailed insight into intangible value reporting by company, sector, and country. Consult the report document for graphs, executive commentary, and opinion pieces by our experts. Brand Finance helped craft the internationally recognised standard on Brand Valuation – ISO 10668, and the recently approved standard on Brand Evaluation – ISO 20671. Data compiled for Brand Finance reports are provided for the benefit of the media and are not to be used for any commercial or technical purpose without written permission from Brand Finance. See the full Brand Finance GIFT™ 2018 report here


Published by Unai Admin

18/07/2025

Corporate Excellence and Dircom hold the First Conference on Innovation in Metrics

Madrid, March 10th, 2014. The importance of intangible assets as a management and value creation tool is clear. One of Corporate Excellence’s key objectives is to demonstrate the economic impact of intangible assets and resources. The truth is that the new reputation-driven economic system needs reliable and rigorous long-term indicators such as brand, reputation, employees’ commitment and customer satisfaction. These indicators help companies to engage their stakeholders and develop long-term strategies. This was the starting point of the 1st Conference on Innovation in Metrics held last week in Madrid by Corporate Excellence jointly with one of its key allies, Dircom Spain. José Manuel Velasco, Dircom’s President, emphasized that one of the main challenges faced by Communication Directors today is to demonstrate the value of intangible assets internally in order to secure adequate resources for their management. In his turn, Corporate Excellence’s President Jose Luis González-Besada, said that today competition is not about size, price or any other financial variable – it is all about reputation. And competition over reputation emphasizes the importance of respect, admiration, empathy and support of all those who play the key role in organizations’ continuity – their stakeholders. This focus introduces a new way of doing business – a long-term multistakeholder approach to management. The first session titled The Methodology and Process of Defining Identity and Culture was presided by Mariano Maqueda, Partner and Director of Punto de Fuga, and María Such, Manager for Corporate Reputation at BBVA. It was discussed the case of identity-based redefinition of BBVA’s vision from within and the impulse that a shared culture may give a company, uniting its employees in the understanding of the common direction. Qualitative research tools played the key role in this process as well as the support provided by the top management. Millward Brown, represented by Pepe Martinez, Director & Marketing Responsible, and Adolfo Fernández, Client Service Director Madrid Office, presented its Brand Equity Model designed for identifying associations evoked by the corporate brand and thus determining its main competitive advantage. Both speakers argued that the area where brands can relate to their stakeholders is content creation. Carmen Dato, Director of Villafane & Asociados, presented the Commercial Reputation Index; while Beverly Nannini, Director at Reputation Institute, talked about the reputational risk management model. Macarena Estevez, Conento’s CEO argued that metrics are essential since they are the only way to improvement and talked about 6 key conditions that ensure their effectiveness: Involvement of the top management; 50 /50 distribution of financial and non-financial indicators in the company’s measurement structure; Regular reporting; Clarity about expectations; Combination of short-term and long-term vision; The more just in time, the better. The session titled Digital Spaces featured Juan Cardona, Reputation and Stakeholders Director at Llorente & Cuenca, who presented the 3rd issue of Online Comments Report – a methodology developed by Llorente & Cuenca together with Corporate Excellence to measure the impact of messages published online on corporate reputation. The methodology is used by 71 companies from seven countries. This presentation was followed by Sergi Guillot, Acceso’s CEO, who talked about Big Data, and José Carlos Martínez Lozoya, Corporate Reputation Manager at Iberdrola, who discussed the measurement tools used by his company. The speakers agreed that companies need to employ professionals with some new profiles in order to successfully manage these tools. Closing remarks were made by Ángel Alloza, CEO of Corporate Excellence – Centre for Reputation Leadership, and Sebastián Cebrián, General Director of Dircom Spain. Alloza and Cebrián emphasized the importance of incorporating non-financial indicators into balanced scorecards. Intangible assets are already on the top managers’ agenda, but in order to strengthen their position it is important to demonstrate their contribution to business and value generation.


Published by Unai Admin

18/07/2025

Llorente&Cuenca and Corporate Excellence present the 3rd issue of Online Comments Analysis

Madrid. March 6, 2014. Llorente&Cuenca and Corporate Excellence – Centre for Reputation Leadership are presenting the 3rd issue of Online Comments Analysis, an analysis model designed for evaluating the impact of online messages on corporate reputation. This year 78,896 URLs, 45,063 references, 71 corporate brands and 16 industries were analyzed by 7 dimensions of reputation (Products and Services, Financial Results, Innovation, Workplace, Leadership, Governance and Citizenship). “The huge impact of new technologies has accelerated social changes that lead to more complicated relations between companies and their numerous stakeholders. The Internet turned everyone into potential producers of information”, says Ángel Alloza, the CEO of Corporate Excellence – Centre for Reputation Leadership, and goes on to add that “in this context, organizations should be aware that it is their responsibility to manage their reputation properly, making the most of those aspects that add value and correcting those aspects that are not welcomed by the public”. This year’s report highlights the fact that Consumer Electronics, analyzed this year for the first time, is the most popular sector by references and points to the fact that these references are mostly positive. “This good result is driven by companies’ efforts to launch innovative products and services, their easy adjustment to changes, business innovations as well as the ability to communicate a good organizational structure and clear vision of the future”, says Iván Pino, Online Communications Director at LLORENTE & CUENCA, Spain and Portugal. Hotels is among those sectors that experienced most significant changes by awareness as compared to previous years. It should also be noted that Oil and Gas companies saw an important improvement in the tone of their stakeholders’ comments - largely due to the companies’ ability to communicate their progress in the way they treat their employees. In terms of the profile of those users who publish their opinions and comments on the Internet, the report shows that “public opinion” drifted from neutral position towards more critical stance. Another important trend is the proliferation of journalists’ professional profiles in different networks. Journalists are the group that generates most information, especially with respect to such subjects as growth potential, profit, the quality of products and services and customer service. The report also shows that Google retains its top positions by awareness for the third year running, which means that this network generates best awareness results for companies. Besides, the quality of these comments increased as compared to the results of 2011 and 2012. About BEO BEO is a research tool designed to evaluate the impact of online comments on corporate reputation. The model has been applied to more than 70 organizations from seven countries. BEO methodology was included into the short list of the Digital Communication Awards 2013 in the category of Digital Monitoring and Evaluation. Full text of the study.


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