How is Intangible Value measured?

Intangible value represents the non-physical aspects of a company's worth, such as brand equity, customer loyalty, intellectual property, and reputation. The correct choice indicates that intangible value can be measured by comparing the market value of brand equity against tangible assets. A ratio greater than one suggests that the brand is valued higher than its physical assets, highlighting the importance of intangible assets in a company’s overall valuation.

This measure is critical because it shows how much of a company's value is derived from its brand and other intangible features rather than just its physical assets like buildings or machinery. High brand equity often correlates with customer loyalty and market trust, leading to increased sales and profit margins, illustrating the significant role intangible assets play in driving business performance.

Other choices incorrectly attempt to quantify intangible value using different ratios that do not effectively capture the essence of intangible metrics. For example, dividing revenue by market share or using company expenses does not directly relate to the concept of intangible value, which focuses specifically on the financial worth of non-physical assets relative to tangible ones.