POWER BRANDS.

BRAND name products; BRAND equity; CORPORATIONS; IMAGE; INDUSTRIAL management; REPUTATION; HUMAN capital; TECHNOLOGICAL innovations; MARKET value; INTANGIBLE property; AMERICAN business enterprises

Not all that glitters in a corporation shows up on its balance sheet. Beyond the hard assets that can be quantified--the cash and factories and receivables--are intangibles like trademarks, patents and ways of doing business. PepsiCo, for example, shows a tangible book value of $6.5 billion, yet a market value of $86.8 billion.Even if you include in PepsiCo's book value the intangible assets, like goodwill, quantified on its balance sheet, Wall Street says you are still $75 billion short of the company's worth.In the first of a four-part series looking beyond the balance sheet, FORBES examines brands. For this study, valuation research firm Predictiv used an econometric model to analyze the relationship between financial metrics like sales, earnings growth and R&D spending on one hand and market value on the other. The contribution that four important intangible assets--reputation, innovation, management and human capital--make to a company's market value is deemed to be its corporate brand value.