Brand analysis service for financiers
The impact of 'corporate brand' is now being reported as a key piece of information for use in evaluating corporate equities, as the Bank of New York's independent equity research consultancy, BNY Jaywalk, has signed an agreement with global brand development and management firm, CoreBrand, to offer brand research and analysis to the financial community.
Under the agreement, CoreBrand will provide individual CoreBrand Outlook reports on corporate brand equity, projected 90-day stock performance and buy/sell/hold recommendations (based in part on the firm's brand ROI models) for more than 500 publicly traded companies.
For the past thirteen years, CoreBrand's studies have shown that the corporate brand affects stock price premium, as identified through higher cash flow multiples and price-earnings ratios. All other financial factors being equal, the stock market grants higher multiples (and therefore higher stock prices) to a company with a stronger brand image.
"Our research has proven that the corporate brand is responsible for up to 20% of a company's total market capitalisation," explained CoreBrand's CEO, Jim Gregory. "For many of the largest companies, that percentage translates into a startlingly large multi-billion dollar number that can't be ignored by CEOs, CFOs, investors, analysts, and the like."
While not a replacement for careful analysis of basic financials like the level and growth of cash flow, earnings, and dividends, CoreBrand asserts that the corporate brand has just as significant an effect on stock price as do financial strength and company size.
Information about BNY Jaywalk's investment research, including the CoreBrand Outlook reports, can be found on the firm's website.