The Vertex Angle - June 2000

In the June 2000 newsletter, we stated that Coca-Cola is the best known trademark in the world and asked you what its estimated value was. We provided the following possible answers for you to choose from:
A. $500M, B. $7.5B, C. $50B, D. $125B, E. 225B.

The Answer

Coca-Cola is sold in virtually every country of the world and few people are unaware of its existence. The trademark is an integral part of the company's success.

One way of determining the value of the Coca-Cola trademark is to look at the company's financial reports. Currently, the share price is in the range of US $58.00. This makes the market capitalization of Coca-Cola approximately US$145B. The value of the net fixed assets reported by the company at 1999 year-end was US $21B. The difference, about US $125B, is the value that can be attributed to the good-will of the company, which in turn is the value of the tradename and the Coca-Cola trademark. Thus 'D', $125B, is the correct answer.

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