Brand equity is a phrase used in the marketing industry that refers to the perceived worth of a brand in and of itself—i.e., the social value of a well-known brand name. It is based on the idea that the owner of a well-known brand name can generate more revenue simply from brand recognition, as consumers perceive the products of well-known brands as better than those of lesser-known brands.

Brand value is simply the sale or replacement value of a brand. This definition may be relevant for investors and for folks who need to include a “goodwill” term in the right-hand side of the balance sheet. Such an accounting entry captures the net present value of long-term value, that is created through the investments on brand assets.