How does the Trefis price take into account the value of company brands and management experience?
Company intangibles such as brand, process know-how and management experience have an impact on the ability of a company to operate effectively and to realize its strategic goals. Such intangibles are not valued separately from the company’s actual business but are implicitly valued when investors make judgments about the likelihood of a company fulfilling a forecast. For example, when Steve Jobs, CEO of Apple, announced in 2007 at the unveiling of the iPhone that Apple would sell 10 million iPhones by the end of 2008 many investors believed him. This was evidenced by Wall Street analyst models forecasting between 8 and 12 million iPhones sold by 2008 and by the stock rising 100% over the next 6 months. Why did so many people believe Apple could do it? Would you have believed any company or any CEO making such a claim? Investor belief had to do with the fact that Apple has experience launching successful consumer products such as the iPod (this is process know-how), they have massive b
