What’s the ‘Barbie buzz’ worth?

BVWireIssue #254-1
November 1, 2023

intangibles
brand value, intangible assets, celebrity value, identifiable intangibles

Having a product prominently displayed in a hit movie has value—but how much? In his pre-IPO valuation of footwear company Birkenstock, Professor Aswath Damodaran (New York University Stern School of Business) examined the firm’s intangibles, one of which was the “Barbie buzz”: having a pink version of the company’s sandals appear in the big blockbuster movie, which “hyper charged the demand for the company’s footwear.”

Revenue bump: All buzzes fade “but not before they create a revenue bump and perhaps even increase the customer base for the long term,” Damodaran writes. He estimates that it will push up the revenue growth rate from 15% to 25% over the next year before reverting to a compounded growth rate of 15% a year in the following four years.

The other main intangibles he valued were the brand name (which has the biggest effect on value), a celebrity customer base, and good management. You can read his full valuation if you click here.

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