With this calculator you can find any Business Valuation that appears in the shark tank.
But if you want to Calculate Business Valuation in Detail based on Net Profit, Annual Revenue, EBITDA and Industry Multiply use this Business Valuation Calculator.
Business Valuation Calculator
What is Post-Valuation?
The post-valuation of the company is the total but estimated net worth of the company after receiving an investment. The post-valuation hints at the company’s worth after securing a deal, including the new capital that is infused in the business.
For example, if an entrepreneur offers 20% equity for a $200,000 investment, the Post-Money Valuation would be:
P= {200,000}{20/100} = 1,000,000
This means the company is valued at $1 million after the investment.
What is Pre-Valuation?
Just like the post-valuation was the company’s net worth after getting an investment, the pre-valuation defines the company’s valuation before receiving the investment. The pre-valuation shows how much assets, growth, market position, and in short, its net worth before any funding.
Using the previous example:
Pre=1,000,000−200,000=800,000
This means the company was valued at $800,000 before receiving the investment.
Projected Growth Over 4 Years
Investors invest to make profit from their investments. In case this does not happen, there is no point of investing in any company. That said, this tool is used to determine a company’s net worth over a period of time.
For example, if the Pre-Money Valuation is $800,000, the projected valuations would be:
- Year 2: $800,000 × 1.2 = $960,000
- Year 3: $800,000 × 1.5 = $1,200,000
- Year 4: $800,000 × 1.8 = $1,440,000
Bubble Chart Data Points
A bubble chart is technically a visual representation between the investments, valuations, net worth, and the growth of the company. With the help of bubble chart data points, the investors determine major dynamics of the deal at hand.
For example, if a company had a Pre-Money Valuation of $800,000 and an investment of $200,000:
- First Bubble: (x = 800,000, y = 200,000, r = 10)
- Second Bubble: (x = 1,000,000, y = 300,000, r = 15)
Mathematical Formulas Used in Shark Tank Business Valuation Calculator
- Post-Money Valuation (P)
- This is the total value of the company after receiving the investment.
- Formula: P= I/(E/100)
- I = Investment amount ($)
- E = Equity percentage (%) offered to the investor
- P = Post-Money Valuation
- Pre-Money Valuation (Pre)
- This is the company’s valuation before the investment.
- Formula: Pre=P−I
- Pre = Pre-Money Valuation
- P = Post-Money Valuation
- I = Investment amount
- Projected Growth Over 4 Years
- The company is expected to grow each year, assuming a steady increase in value.
- Year 1: Pre (Initial valuation)
- Year 2: Pre × 1.2 (20% growth)
- Year 3: Pre × 1.5 (50% growth)
- Year 4: Pre × 1.8 (80% growth)
- Bubble Chart Data Points
- Used for visualizing investment impact.
- First Bubble: (x = Pre, y = I, r = 10)
- The x-axis represents the Pre-Money Valuation.
- The y-axis represents the Investment amount.
- The size of the bubble (r) is 10.
- Second Bubble: (x = P, y = I × 1.5, r = 15)
- The x-axis represents the Post-Money Valuation.
- The y-axis represents an adjusted investment value (investment × 1.5).
- The size of the bubble (r) is 15 (bigger to show increased value).
