Red Bull – Royalty Relief Valuation

Executive Summary

Brand valuation for Red Bull using the royalty relief methodology to estimate the economic contribution of intangible assets.

Objective

To isolate and value the economic contribution of the Red Bull brand.

Approach

• —Identified appropriate royalty rate benchmarks for beverage brands
• —Projected revenue attributable to the brand
• —Calculated hypothetical royalty payments
• —Discounted future royalty savings to present value

Key Outputs

• —Royalty relief valuation model
• —Royalty rate benchmarking
• —Brand value estimate
• —Sensitivity analysis

Tools & Methods