UPS hasn’t had the easiest go in the past two years amid weak demand for freight and falling volumes, but the Atlanta-based parcel delivery giant’s brand is still the most valuable in all of logistics, one brand valuation consultancy says.

According to Brand Finance, UPS’ brand value is $34.6 billion, down 2.4 percent from the year prior but still enough to keep the company at the top of its Logistics 25 report for the 10th year in a row. UPS edges out chief rival FedEx for the top spot, with the Memphis-based shipping company valued at $28.6 billion, a 1 percent decline from 2023 numbers.

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These values are a far cry from either company’s market cap of $109.3 billion and $72.9 billion, with Brand Finance defining “brand value” as the value of the trademark and associated marketing IP within the branded business.

To calculate its valuations, Brand Finance uses a combination of four metrics: brand impact; brand strength; brand impact and brand strength; and a forecast of brand value calculation credibility.

Brand impact measures what companies pay in royalties, and how the brand impacts sector profitability versus generic brands. This results in a royalty range that could be charged sector-wide, such as 0 percent to 2 percent of total revenue.

Meanwhile, brand strength ties in research on the activities supporting future success, current perceptions of the brands and performance metrics like market share to assign a Brand Strength Index (BSI) score out of 100.

Together, brand impact and brand strength combine the royalty range and BSI to come up with a royalty rate. That means that if a sector’s royalty range is 0 percent to 5 percent and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand would be 4 percent

The final metric forecasts revenues by analyzing historic revenues, equity analyst forecasts and economic growth rates. From there, Brand Finance applies the royalty rate to the forecast revenues to calculate brand value.

“Brand valuation can be useful in the event of a merger or acquisition, as it can help determine the value of the brand being acquired,” David Haigh, chairman and CEO of Brand Finance, in the report. “A strong brand can also help a company command a higher price for its products or services, as consumers are willing to pay more for a brand they perceive as high-quality and trustworthy.”