valuation
An official statement of how much money something like a company, house, or land is worth.
An official estimate of how much money an asset, company, or property is worth, usually for sale, investment, tax, or accounting purposes.
The opinion or judgment of how important or good something or someone is, not about money value.
The act or result of judging how important, useful, or good something or someone is, without primarily referring to money.
In higher mathematics or logic, a special rule that gives each element in a system a number or a true/false value, following fixed laws.
In mathematics or logic, a function that assigns to each element of a structure a number, size, or truth value that satisfies certain formal rules.
- Base: valuation
- Plural: valuation, valuations
business valuation
1estimating a business’s worth
The process and final number that say how much a business is worth in money.
- We hired a specialist firm to conduct a business valuation before selling the company.
- Accurate business valuation is essential when bringing in new investors.
- Her thesis compares different methods of business valuation in emerging markets.
company valuation
1estimated worth of a company
The money value that people or the market say a company has at a certain time.
- The merger was agreed at a company valuation of €3.5 billion.
- Analysts say the company valuation is not justified by its current profits.
- News of the product launch pushed the company valuation to a new high.
market valuation
1value based on market prices
How much something is worth according to current prices in the market, not just on paper or in theory.
- The company’s market valuation has doubled in the past year.
- Many analysts believe the current market valuation of tech stocks is too high.
- Currency moves can significantly affect the market valuation of foreign assets.
on valuation grounds
1for reasons of value level
Because the price or value level of an investment looks good or bad compared to what it is really worth.
- Many investors avoid the sector on valuation grounds, saying the shares are too expensive.
- The stock was added to the portfolio purely on valuation grounds.
- They downgraded the company on valuation grounds despite strong earnings.
post-money valuation
1company value after funding
How much a company is worth right after new money from investors is added.
- The deal gives the startup a post-money valuation of $50 million.
- They often quote the post-money valuation when announcing funding rounds.
- To find the post-money valuation, add the investment amount to the pre-money valuation.
pre-money valuation
1company value before funding
How much a company is worth just before new money from investors is added.
- The round was raised at a $20 million pre-money valuation.
- Negotiations broke down because the founders wanted a higher pre-money valuation.
- Understanding pre-money valuation is key when calculating investor ownership.
property valuation
1estimate of real estate value
An official estimate of how much a house, apartment, or land is worth in the market.
- The bank required a property valuation before approving the home loan.
- We booked a free online property valuation to decide whether to sell.
- Her job involves reviewing property valuation reports for the insurance company.
valuation cap
1maximum value for investment conversion
A limit on how high the company’s value can be when some special investments change into shares.
- The seed investors negotiated a $5 million valuation cap on their convertible notes.
- A lower valuation cap gives early investors more potential upside.
- Founders should understand how the valuation cap affects future dilution.
valuation model
1method for calculating value
A method or set of rules that people use to work out how much something is worth in money.
- The analyst updated her valuation model after the company changed its guidance.
- Different valuation models can give very different results for the same asset.
- They rely on a discounted cash flow valuation model to price investments.
valuation multiple
1ratio of value to earnings or sales
A number that shows how big a company’s value is compared to its earnings, sales, or another financial number.
- The stock trades at a high valuation multiple compared with its peers.
- Investors often look at valuation multiples like P/E or EV/EBITDA.
- Falling growth usually leads to a lower valuation multiple.
valuation report
1document stating an asset’s value
A written report that explains and shows the official value of a house, company, or other asset.
- The bank will issue the loan once the valuation report is complete.
- The valuation report details the methods used to reach the final figure.
- We attached the independent valuation report to support our insurance claim.