Brand Value and Growth Options Value

This study analyses the relationship between firm growth options value and brand value. To date, it is commonly accepted that brands positively relate to a firm’s future income. However, are brands positively related to firm’s fundamental values or irrational perceptions on the capital market? With the help of a methodology developed by van Bekkum et al. (2011) it is possible to differentiate between future fundamental and irrational value. The results show that the relationship depends on the type of market where the brand operates in. Whereas in growth markets it seems to be that brand value has a stronger relationship with irrational value, in mature markets brand value has a stronger relationship with fundamental values.