Trademark Valuation Multiples

Project / Case Reference Samples
Retrieval Date May 19, 2019
valuing / reporting entity Danske Bank A/S
year 2007
headquartered in Denmark currency Denmark Krone (DKK) million
reason for valuation PPA - share deal valuation concept fair value
company / business
Sampo Pankki Oyj
main activities retail bank; commercial bank
home country Finland business territory international
business description Sampo Bank is the third largest bank in Finland with an extensive branch network, subsidiaries in Estonia, Latvia and Lithuania, and a recently acquired bank in Russia. Sampo Bank has 125 branches and about 3,475 employees in Finland. The subsidiaries in Estonia, Latvia and Lithuania have a total of 33 branches and some 1,100 employees. Sampo Bank’s business focus is on retail customers, small and medium-sized business customers and institutional customers. With 1.1 million retail customers and 100,000 corporate customers, Sampo Bank holds 15% of the retail market and 20% of the corporate market in Finland. The majority of the bank’s business with retail customers is within home financing. Sampo Bank is technologically advanced and has 800,000 online banking customers. Most of the bank’s business originates in Finland where Sampo has a 15.3% market share in lending and 12.6% in deposits, but the subsidiaries in Estonia, Latvia and Lithuania have shown considerable growth and rising market shares within home financing, in particular. Sampo Bank is the third largest foreign-owned bank in the Baltic countries. Recently, Sampo Bank took over Industry and Finance Bank in St. Petersburg, which serves primarily large Finnish corporate customers doing business in Russia. This bank is included in the purchase. Sampo Pankki's customer loan portfolio amounted to DKK 165 billion.
trademark value DKK 465 million trademark useful lifetime in years indefinite
trademark revenues DKK 6,082 million (revenues from interest)
customer value DKK 4,371 million
value of other intangible assets DKK 349 million
goodwill DKK 17,610 million
tangible assets DKK 179,565 million
enterprise value debt-free DKK 30,811 million total assets DKK 202,360 million
comments revenues relate to net interest, fee plus trading income; trademark was fully impaired in 2012 due to a decision to rebrand the business
enterprise value multiples
enterprise value / revenues 5.07x enterpise value / profit
trademark in relation to other assets enterprise value = 100% total assets = 100%
trademark / brand (indefinite) 1.5% 0.2%
customer relations 14.2% 2.2%
other intangible assets 1.1% 0.2%
goodwill 57.2% 8.7%
tangible assets 582.8% 88.7%
(total) (657%)
100% 100%
trademark multiples – revenue based
trademark value / revenues in % 7.6%
implied trademark royalty rates 1)
implied royalty rate – low 0.6%
implied royalty rate – mean 0.7%
implied royalty rate – high 0.9%
trademark multiples – profit based
trademark profit split 2) 1.5%
valuation parameters
reported discount rate 12% reported growth rate 2.5%
corporate tax rate (Finland) 26%
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.