Valuation
Valuation is the process of determining a company’s worth. Valuations can be determined as multiplies of the company’s metrics or comparisons to other companies that recently valued at certain amounts.
Example:
“Valuation” is probably the most common term from the hit TV show Shark Tank.
Startup Owner: “I am seeking $100,000 for 10% equity in my company.”
Shark: “The valuation of your company is $1,000,000, yet your sales are only $20,000. The valuation of your company is way too high. You’re dead to me. I’m out.”