Trademark Valuation Multiples

Project / Case Reference Samples
Retrieval Date February 23, 2017
valuing / reporting entity Kellogg Company
year 2012
headquartered in United States currency United States Dollar (USD) million
reason for valuation PPA - asset deal valuation concept fair value
company / business / brand
main activities food; potato snacks; crisp snacks
home country United States business territory global
description Acquisition of the Pringles® business (Pringles) from The Procter & Gamble Company (P&G). Pringles is the world's second largest player in savory snacks, potato crisps and sticks, with $1.5 billion in sales across more than 140 countries. Easily identified by its unique saddle shape and distinct canister packaging, and with more than 80 flavors, snack lovers worldwide have made Pringles a snack aisle favorite for more than four decades.
trademark value USD 776 million trademark useful lifetime in years indefinite
trademark revenues USD 1,552 million (revenues from sales of products or services)
trademark royalty rate as reported
customer value USD 79 million
value of other intangible assets USD 0 million
goodwill USD 1,319 million
tangible assets USD 605 million
enterprise value debt-free USD 2,668 million total assets USD 2,779 million
enterprise value multiples
enterprise value / revenues 1.72x enterpise value / profit
trademark in relation to other assets enterprise value = 100% total assets = 100%
trademark / brand (indefinite) 29.1% 27.9%
customer relations (20 years) 3.0% 2.8%
other intangible assets 0.0% 0.0%
goodwill 49.4% 47.5%
tangible assets 22.7% 21.8%
(total) (104%)
100% 100%
trademark multiples – revenue based
trademark value / revenues in % 50.0%
implied trademark royalty rates 1)
implied royalty rate – low 4.5%
implied royalty rate – mean 5.6%
implied royalty rate – high 6.6%
trademark multiples – profit based
trademark profit split 2) 29.1%
valuation parameters
reported discount rate reported growth rate
corporate tax rate (United States) 40%
1) implied royalty rates Implied royalty rates must not be confounded with reported or effective royalty rates. Implied royalty rates are hypothetical rates which the appraiser might have applied under certain likely assumptions to arrive at the reported trademark value. Such assumptions include revenue growth rates, discount rates, and tax rates. MARKABLES calculates implied royalty rates in a cautious and in an optimistic scenario, by applying different assumptions of discount rates and growth rates to future revenues. These two scenarios represent the first and third quartile range of assumptive valuation parameters typically observed in PPAs and trademark valuations.
For a detailed explanation of implied royalty rates, please go to the glossary page on The link to the glossary is on the top right in any of your project folders.
2) trademark profit split The profit split is an approximation of the part of the overall future profit of the business that must be generated from the trademark asset.
For a detailed explanation of the trademark profit split, please go to the glossary page on The link to the glossary is on the top right in any of your project folders.