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.
“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.”