Valuation
Valuation is an estimate of the economic or market worth of an asset, business, investment, or ownership interest.
Tech Startup Toolkit
A valuation is an estimated monetary value assigned to a company or other asset, including the value represented by a public company's market capitalization.
- How it is used
- Frames fundraising, dilution, employee equity, and exit planning around what a startup is worth.
- How deep it goes
- Defines pre- and post-money value, then works through share dilution and stake-value changes without CFO-level valuation mechanics.
- Examples
- Uses a seed and Series A figure, a 1,000-share dilution scenario, and acquisition offers based on revenue multiples.
- What you can do after
- Evaluate/understand how fundraising price, ownership dilution, and business progress interact when judging a startup’s value.
Investing for Programmers
Valuation is an estimate of the economic or market worth of an asset, company, or ownership interest.
- How it is used
- Frames valuation as a practical tool for assessing public stocks and private start-up investment opportunities.
- How deep it goes
- Explains valuation methods, ratios, risks, and a Python DCF model, but stops short of resolving uncertain forecasts or due-diligence gaps.
- Examples
- Uses a hypothetical $100 million start-up, Python DCF projections, and comparative earnings-ratio tables for NVIDIA, Apple, Sempra, Walmart, and Coca-Cola.
- What you can do after
- Evaluate companies with valuation ratios, compare market metrics, and build a basic discounted-cash-flow model in Python.
Related concepts
- discounted cash flow modelused by · A discounted cash flow model estimates an asset's value by discounting projected future cash flows to their present value.
- cyclically adjusted price-to-earnings ratiomeasured by · The cyclically adjusted price-to-earnings ratio is a valuation metric that divides an asset's price by its average inflation-adjusted earnings over the preceding ten years.
- post-money valuationincludes · A post-money valuation is the value assigned to a company immediately after a new investment, including the invested cash.
- pre-money valuationincludes · A pre-money valuation is the agreed value of a company immediately before a financing investment is added.
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