Here Are The Most Valuable Car Brands In The World Right Now

Jersey City, New Jersey – Authoritative American business magazine Forbes is famous for its lists – among them its annual rankings of the world’s most valuable brands.

And right up there at No.6, just behind the tech giants and Coca-Cola, is the world’s biggest carmaker.

Here are the top 12 carmakers, in order of their overall rankings:

6 Toyota: $42.1 billion (+11 percent).

14 BMW: $28.8 billion (+4 percent).

20 Mercedes-Benz: $26 billion (+16 percent)

23 Honda: $25.2 billion (+8 percent)

35 Ford: $14.1 billion (+12 percent)

36 Audi: $14 billion (+10 percent)

59 Chevrolet: $9.8 billion (+10 percent)

63 Lexus: $9 billion (+13 percent)

67 Porsche: $8.3 billion (+18 percent)

70 Nissan: $8.2 billion (+13 percent)

71 Hyundai: $8.1 billion (-4 percent)

77 Volkswagen: $7.6 billion (-5 percent)

How does Forbes calculate brand value?

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First, it averages out before-tax earnings for the past three years, then subtracts eight percent, on the grounds that a no-name brand should be able to earn at least that percentage return on this much capital.

Then Forbes applies the maximum tax rate in the country where the company is based, and multiplies by a factor based on how important brand names are in that particular market. The name on the packaging is way more important when buying beer than when buying, for instance, milk, but this factor will be the same for all car companies.

That brand earnings figure is then multiplied by the ratio of the company’s share price to its earnings, averaged over the past three years, to arrive at the brand value.

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