The Motley Fool

Australia’s top 10 most valuable brands

Telstra Corporation’s (ASX: TLS) brand value has soared seeing it rise up the charts of Australia’s top 100 most valuable brands according to Brand Finance, a marketing and consulting company.

While most companies in the list saw small to medium gains in their brand value, Telstra’s rose 59%, as the giant telco extends its mobile dominance over Optus and Vodafone.

Woolworths Limited (ASX: WOW) retained its number one position, with a brand value of $12.1 billion, followed by Telstra in second with a $9.3 billion brand.

Resources giant BHP Billiton Limited (ASX: BHP) dropped one place to third, with a brand valued at $7.4 billion.

Coles – owned by Wesfarmers Ltd (ASX: WES) – came in at fourth, the same place as in 2013, closely followed by Australia and New Zealand Banking Group (ASX: ANZ) with brands valued at $7.1 billion and $6.6 billion respectively.

The other big three banks, Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) came in at sixth, seventh and eighth respectively.

Iron ore miner Rio Tinto Limited (ASX: RIO) dropped one place to ninth with a brand value of $5.1 billion, with Optus –owned by Singapore Telecommunications Ltd (ASX: SGT) rounding out the top 10.

According to Brand Finance, brand value is based on the value a company may be willing to pay to licence its brand if it did not own it. It includes estimates of future revenue attributable to a brand.

Foolish takeaway

Savvy readers will note that brand value bears no relation to market value or the relative size of each company’s net profit. BHP’s market cap is around $190 billion, while Woolworths’ is currently $44.9 billion. It’s an interesting exercise, and moves within the list may offer some clues to the potential future fortunes of the companies – with both resources stocks, BHP and RIO dropping a place.

Get our top dividend stock for 2014 – FREE!

Interested in our #1 dividend-paying stock? Discover The Motley Fool's favourite income idea for 2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of "The Motley Fool's Top Dividend Stock for 2014."

Motley Fool writer/analyst Mike King owns shares in Woolworths and Telstra. You can follow Mike on Twitter @TMFKinga

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.