Financial World (founded in 1902) is significantly older than the other three financial magazines: Fortune (1930), Forbes (1917), and BusinessWeek (1929). However, all four magazines share one commonality: they each produce rankings that have a global impact. Regarding Financial World, its ‘Global Brand Value List’, ‘Sports Team Value List’, and ‘Top 500 Global Companies’ all exert considerable international influence and are often recognized by renowned media such as The New York Times.
Global Brand Name Valuation
Financial World first released the ‘Global Most Valuable Brands’ (Global Brand Name Valuation) list in 1992 and published the results annually until 1996. This list is regarded as one of the most authoritative and prestigious brand value rankings in the world. Financial World focuses on product brands rather than corporate brands, distinguishing itself from other brand valuation organizations that often mix product and corporate brands. This approach avoids confusion and enhances the targeting and comparability of the valuation results. The brands are further categorized by industry, allowing readers to compare and analyze them more clearly.
Financial World began measuring brand value in September 1992 for a select number of high-profile brands, such as Budweiser, Coca-Cola, Heinz, and Marlboro. Over time, the scope of brand evaluations expanded to include more industries. By 1996, the number of brands evaluated globally by Financial World had grown to 364 from 180 countries. The key factors considered in the selection of brands for evaluation include reader interest and the availability of brand-related data, encompassing the brand's profit and strength factors.
Sports Franchise Valuation
Financial World is one of the oldest financial magazines in the United States, and the Sports Franchise Valuation Issue is one of the magazine's most renowned studies. It assesses the value of each team's franchise and ranks them, allowing for a tangible determination of the overall value of the team. The magazine assembled a five-member team to study the value of sports franchises starting in 1990. From 1991 to 1997, it published annual rankings of American baseball, basketball, football, and hockey teams, which are considered highly credible and were often compared to the rankings of Forbes magazine in later years.
In 1999, Christina Vogel of Wake Forest University published a paper on the valuation of sports franchises, noting that after years of research and input from various sectors, Financial World developed a method for calculating Franchise Value. This value is determined by averaging the team's gross revenues over the past three years and multiplying it by a specific multiple. This multiple is derived from various factors, including the stadium's lease conditions, the team's debt status, and the market in which the team operates. A team with a favorable stadium lease and minimal debt can achieve a higher multiple.
The Forecast 500
Financial World published the Forecast 500 in 1995, marking the first time in history that an evaluation score was assigned to each evaluated company. Readers can utilize this data to assess the performance of these 500 companies in 1996. These companies are categorized into 28 industries. The forecast employs the FW Forecast Grade rating tool, which classifies publicly traded companies into four ratings (A, B, C, D, and E, with A representing Very Outstanding, B for Above Average, C for Average, D for Below Average, and E for Very Poor).
This rating system combines three indices: Estimated Earnings-Per-Share Growth, 5-Year Average Return on Equity, and Financial Strength, with each index contributing one-third of the total weight. The system is comprehensive in predicting the performance of the 500 companies in the forthcoming year. When the report was released, it generated significant attention. Since then, various consulting firms and financial media have adopted similar methodologies, and these ratings have quickly gained popularity. This system has become a template for many future company evaluation frameworks.