{"id":3138,"date":"2025-07-04T16:14:26","date_gmt":"2025-07-04T10:44:26","guid":{"rendered":"https:\/\/valugenius.in\/blog\/?p=3138"},"modified":"2025-07-04T16:16:26","modified_gmt":"2025-07-04T10:46:26","slug":"how-to-calculate-valuation-of-a-company-shark-tank-style","status":"publish","type":"post","link":"https:\/\/valugenius.in\/blog\/how-to-calculate-valuation-of-a-company-shark-tank-style\/","title":{"rendered":"How to Calculate Valuation of a Company \u2014 Shark Tank Style!"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text]<span style=\"font-weight: 400;\">Ever watched <\/span><i><span style=\"font-weight: 400;\">Shark Tank<\/span><\/i><span style=\"font-weight: 400;\"> and wondered how founders just throw out numbers like \u201cWe\u2019re seeking \u20b91 crore for 10% equity,\u201d and the sharks instantly start calculating? That number is called <\/span>valuation<span style=\"font-weight: 400;\"> \u2014 and it\u2019s more than just a guess.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In real life, and especially in India\u2019s growing startup ecosystem, <\/span><a href=\"https:\/\/valugenius.in\/Business-Valuation.html\" target=\"_blank\" rel=\"noopener\">business valuation<\/a><span style=\"font-weight: 400;\"> is serious business. Whether you&#8217;re pitching to investors, selling your company, or just planning your next financial move, knowing how much your company is <\/span><i><span style=\"font-weight: 400;\">really<\/span><\/i><span style=\"font-weight: 400;\"> worth is essential.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s where <\/span><a href=\"https:\/\/valugenius.in\/\" target=\"_blank\" rel=\"noopener\">ValuGenius<\/a><span style=\"font-weight: 400;\"> steps in \u2014 one of the most trusted <\/span><a href=\"https:\/\/cajdshah.com\/\" target=\"_blank\" rel=\"noopener\">financial planning companies in Mumbai<\/a><span style=\"font-weight: 400;\">, helping you decode valuation like a pro (without needing a finance degree!).<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_single_image image=&#8221;3157&#8243; img_size=&#8221;large&#8221; alignment=&#8221;center&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/valugenius.in\/blog\/how-to-calculate-valuation-of-a-company-shark-tank-style\/#What_is_Valuation_in_Simple_Terms\" >What is Valuation in Simple Terms?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/valugenius.in\/blog\/how-to-calculate-valuation-of-a-company-shark-tank-style\/#Why_Valuation_Matters_Especially_in_India\" >Why Valuation Matters (Especially in India)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/valugenius.in\/blog\/how-to-calculate-valuation-of-a-company-shark-tank-style\/#How_Do_Sharks_and_Investors_Calculate_Valuation\" >How Do Sharks (and Investors) Calculate Valuation?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/valugenius.in\/blog\/how-to-calculate-valuation-of-a-company-shark-tank-style\/#1_Asset-Based_Valuation_Net_Asset_Value_%E2%80%93_NAV\" >1. Asset-Based Valuation (Net Asset Value &#8211; NAV)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/valugenius.in\/blog\/how-to-calculate-valuation-of-a-company-shark-tank-style\/#2_Income-Based_Valuation_Discounted_Cash_Flow_%E2%80%93_DCF\" >2. Income-Based Valuation (Discounted Cash Flow &#8211; DCF)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/valugenius.in\/blog\/how-to-calculate-valuation-of-a-company-shark-tank-style\/#3_Market-Based_Valuation_Comparative_or_Relative_Valuation\" >3. Market-Based Valuation (Comparative or Relative Valuation)<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/valugenius.in\/blog\/how-to-calculate-valuation-of-a-company-shark-tank-style\/#%E2%9E%A4_PE_Ratio_Price_to_Earnings\" >\u27a4 PE Ratio (Price to Earnings)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/valugenius.in\/blog\/how-to-calculate-valuation-of-a-company-shark-tank-style\/#%E2%9E%A4_PS_Ratio_Price_to_Sales\" >\u27a4 PS Ratio (Price to Sales)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/valugenius.in\/blog\/how-to-calculate-valuation-of-a-company-shark-tank-style\/#%E2%9E%A4_PBV_Ratio_Price_to_Book_Value\" >\u27a4 PBV Ratio (Price to Book Value)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/valugenius.in\/blog\/how-to-calculate-valuation-of-a-company-shark-tank-style\/#%E2%9E%A4_EBITDA_Multiple\" >\u27a4 EBITDA Multiple<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/valugenius.in\/blog\/how-to-calculate-valuation-of-a-company-shark-tank-style\/#Quick_Example_Shark_Tank_Style\" >Quick Example (Shark Tank Style)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/valugenius.in\/blog\/how-to-calculate-valuation-of-a-company-shark-tank-style\/#Case_1_Asset_Approach\" >Case 1: Asset Approach<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/valugenius.in\/blog\/how-to-calculate-valuation-of-a-company-shark-tank-style\/#Case_2_DCF_Approach\" >Case 2: DCF Approach<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/valugenius.in\/blog\/how-to-calculate-valuation-of-a-company-shark-tank-style\/#Common_Mistakes_Founders_Make\" >Common Mistakes Founders Make<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/valugenius.in\/blog\/how-to-calculate-valuation-of-a-company-shark-tank-style\/#Why_Choose_ValuGenius_for_Valuation_in_India\" >Why Choose ValuGenius for Valuation in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/valugenius.in\/blog\/how-to-calculate-valuation-of-a-company-shark-tank-style\/#In_Summary_How_to_Calculate_Company_Valuation\" >In Summary: How to Calculate Company Valuation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/valugenius.in\/blog\/how-to-calculate-valuation-of-a-company-shark-tank-style\/#Ready_to_Value_Your_Business\" >Ready to Value Your Business?<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_Valuation_in_Simple_Terms\"><\/span>What is Valuation in Simple Terms?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Valuation is like figuring out the <\/span><i><span style=\"font-weight: 400;\">price tag<\/span><\/i><span style=\"font-weight: 400;\"> of your business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Imagine if your company were a pizza \u2014 valuation tells you how many slices it\u2019s worth and what each slice costs. It helps investors decide: <\/span><i><span style=\"font-weight: 400;\">Is this pizza worth buying?<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">In financial terms, <\/span>valuation of a company<span style=\"font-weight: 400;\"> is the process of finding its fair market value \u2014 based on assets, profits, cash flow, and other performance metrics.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;1\/2&#8243;][vc_single_image image=&#8221;3160&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221;][\/vc_column][vc_column width=&#8221;1\/2&#8243;][vc_column_text]<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_Valuation_Matters_Especially_in_India\"><\/span>Why Valuation Matters (Especially in India)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Startups in India<\/b><span style=\"font-weight: 400;\"> are booming \u2014 but over 70% of founders overestimate their worth during funding rounds.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Accurate valuation helps in:<\/strong>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Attracting the right investors<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Planning business exits or mergers<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Taking better financial decisions<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">That\u2019s why smart businesses work with experts like <\/span><a href=\"https:\/\/valugenius.in\/\" target=\"_blank\" rel=\"noopener\">ValuGenius<\/a> \u2014 a leader in valuation business in India.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_Do_Sharks_and_Investors_Calculate_Valuation\"><\/span>How Do Sharks (and Investors) Calculate Valuation?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There\u2019s no one-size-fits-all formula. But there are <\/span><b>3 main methods<\/b><span style=\"font-weight: 400;\"> used in India and globally. Let\u2019s break them down simply:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Asset-Based_Valuation_Net_Asset_Value_%E2%80%93_NAV\"><\/span>1. Asset-Based Valuation (Net Asset Value &#8211; NAV)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This is like calculating what your business would be worth if you sold everything today.<\/span><\/p>\n<blockquote><p><b>Formula:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Valuation = Total Assets &#8211; Total Liabilities<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Best for businesses with lots of physical assets (like factories or real estate).<\/span><\/p><\/blockquote>\n<h3><span class=\"ez-toc-section\" id=\"2_Income-Based_Valuation_Discounted_Cash_Flow_%E2%80%93_DCF\"><\/span>2. Income-Based Valuation<b> (Discounted Cash Flow &#8211; DCF)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This one is about <\/span><b>future earnings<\/b><span style=\"font-weight: 400;\">. It\u2019s like saying: \u201cIf my business will make \u20b9X over the next few years, what\u2019s that worth today?\u201d<\/span><\/p>\n<blockquote><p><b>Formula:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">DCF = Future Cash Flows \u00f7 (1 + r)^n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Where:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">r<\/span><span style=\"font-weight: 400;\"> = interest rate or Weighted Average Cost of Capital (WACC)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">n<\/span><span style=\"font-weight: 400;\"> = number of years in the future<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Best for startups or growing companies with strong future projections.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Market-Based_Valuation_Comparative_or_Relative_Valuation\"><\/span>3. Market-Based Valuation (Comparative or Relative Valuation)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This is Shark Tank\u2019s favourite. You compare your business to others in your industry using valuation multiples like:<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"%E2%9E%A4_PE_Ratio_Price_to_Earnings\"><\/span>\u27a4 PE Ratio (Price to Earnings)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">PE = Share Price \/ Earnings Per Share<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Use when the company has steady profits.<\/span><\/i><\/p>\n<h4><span class=\"ez-toc-section\" id=\"%E2%9E%A4_PS_Ratio_Price_to_Sales\"><\/span>\u27a4 PS Ratio (Price to Sales)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">PS = Share Price \/ Revenue Per Share<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Helpful if your business doesn\u2019t have profits yet.<\/span><\/i><\/p>\n<h4><span class=\"ez-toc-section\" id=\"%E2%9E%A4_PBV_Ratio_Price_to_Book_Value\"><\/span>\u27a4 PBV Ratio (Price to Book Value)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">PBV = Share Price \/ Net Asset Book Value<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Common in banking and asset-heavy industries.<\/span><\/i><\/p>\n<h4><span class=\"ez-toc-section\" id=\"%E2%9E%A4_EBITDA_Multiple\"><\/span><b>\u27a4 EBITDA Multiple<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">EBITDA Ratio = EBITDA \/ Net Sales<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Gives a clean picture by excluding interest, tax, depreciation.<\/span><\/i>[\/vc_column_text][vc_separator][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Quick_Example_Shark_Tank_Style\"><\/span>Quick Example (Shark Tank Style)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Scenario:<\/b><span style=\"font-weight: 400;\"> You pitch to investors and say your business is worth \u20b95 crore.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They ask: <\/span><i><span style=\"font-weight: 400;\">Why?<\/span><\/i><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Case_1_Asset_Approach\"><\/span>Case 1: Asset Approach<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You own machines, computers, and stock worth \u20b92 crore. You owe \u20b950 lakhs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your valuation = \u20b92 crore &#8211; \u20b90.5 crore = <\/span><b>\u20b91.5 crore<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Shark\u2019s thought: <\/span><i><span style=\"font-weight: 400;\">Too low \u2014 your valuation doesn\u2019t match your ask.<\/span><\/i><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Case_2_DCF_Approach\"><\/span>Case 2: DCF Approach<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You\u2019ll make \u20b91 crore\/year for 5 years, and the discount rate is 10%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your valuation = \u20b93.8 crore (after discounting future earnings)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Shark\u2019s thought: <\/span><i><span style=\"font-weight: 400;\">Okay, now we\u2019re talking!<\/span><\/i>[\/vc_column_text][vc_separator][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Common_Mistakes_Founders_Make\"><\/span>Common Mistakes Founders Make<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Overvaluing based on <\/span><i><span style=\"font-weight: 400;\">hope<\/span><\/i><span style=\"font-weight: 400;\"> instead of data\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ignoring market comparisons\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Not knowing key ratios like PE or EBITDA\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Forgetting liabilities and debts<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">With <\/span><b>ValuGenius<\/b><span style=\"font-weight: 400;\">, you get expert insights and personalized company valuation reports that investors trust. No guesswork, just smart numbers.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;1\/2&#8243;][vc_column_text]<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_Choose_ValuGenius_for_Valuation_in_India\"><\/span>Why Choose ValuGenius for Valuation in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Trusted by startups, SMEs &amp; corporates<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Real-time market data &amp; ratios<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transparent &amp; audit-proof methods<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Based in Mumbai, helping founders across India &amp; globally<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Whether you&#8217;re pitching in a boardroom or on a Shark Tank stage, <\/span><a href=\"https:\/\/valugenius.in\/\" target=\"_blank\" rel=\"noopener\">ValuGenius<\/a> helps you <i>know your value before you show your value<\/i>.[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/2&#8243;][vc_single_image image=&#8221;3128&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h2 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"In_Summary_How_to_Calculate_Company_Valuation\"><\/span>In Summary: How to Calculate Company Valuation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"width: 93.9087%; margin-left: auto; margin-right: auto; text-align: left;\">\n<tbody>\n<tr style=\"background-color: #062268; color: #ffffff;\">\n<th style=\"border: 2px solid white; padding-left: 10px; width: 29%;\"><b>Method<\/b><\/th>\n<th style=\"border: 2px solid white; padding-left: 10px; width: 33.7243%;\"><b>Best For<\/b><\/th>\n<th style=\"border: 2px solid white; padding-left: 10px; width: 55.2757%;\"><b>Quick Formula<\/b><\/th>\n<\/tr>\n<tr>\n<td style=\"background-color: #f1823a; color: #ffffff; border: 2px solid white; padding-left: 10px; width: 29%;\"><strong><b>Asset-Based<\/b><\/strong><\/td>\n<td style=\"border: 1px solid black; text-align: left; padding-left: 10px; width: 33.7243%;\"><strong>Asset-heavy businesses<\/strong><\/td>\n<td style=\"border: 1px solid black; text-align: left; padding-left: 10px; width: 55.2757%;\">Assets \u2013 Liabilities<\/td>\n<\/tr>\n<tr>\n<td style=\"background-color: #f1823a; color: #ffffff; border: 2px solid white; padding-left: 10px; width: 29%;\"><strong>Income-Based (DCF)<\/strong><\/td>\n<td style=\"border: 1px solid black; text-align: left; padding-left: 10px; width: 33.7243%;\"><strong>Predictable future earnings<\/strong><\/td>\n<td style=\"border: 1px solid black; text-align: left; padding-left: 10px; width: 55.2757%;\">Future Cash Flows \u00f7 (1 + r)^n<\/td>\n<\/tr>\n<tr>\n<td style=\"background-color: #f1823a; color: #ffffff; border: 2px solid white; padding-left: 10px; width: 29%;\"><b>Market-Based<\/b><\/td>\n<td style=\"border: 1px solid black; text-align: left; padding-left: 10px; width: 33.7243%;\"><strong>All-round use, especially startups<\/strong><\/td>\n<td style=\"border: 1px solid black; text-align: left; padding-left: 10px; width: 55.2757%;\"><span style=\"font-weight: 400;\">PE, PS, PBV, EBITDA multiples<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ready_to_Value_Your_Business\"><\/span>Ready to Value Your Business?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Whether you\u2019re dreaming big, raising funds, or planning an exit \u2014 valuation is your first step to serious growth.<\/span><\/p>\n<blockquote><p>Get your company valuation the smart way with ValuGenius<span style=\"font-weight: 400;\"> \u2014 Mumbai\u2019s leading name in <\/span>financial planning and valuation business in India<span style=\"font-weight: 400;\">.<\/span><\/p><\/blockquote>\n<p>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text]Ever watched Shark Tank and wondered how founders just throw out numbers like \u201cWe\u2019re seeking \u20b91 crore for 10% equity,\u201d and the sharks instantly start calculating? That number is called valuation \u2014 and it\u2019s more than just a guess. In real life, and especially in India\u2019s growing startup ecosystem, business valuation is serious business. Whether [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3148,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17,47],"tags":[56,54,55,57],"class_list":["post-3138","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-consulting","category-valuation","tag-investors","tag-sebi","tag-startups","tag-stock-market"],"_links":{"self":[{"href":"https:\/\/valugenius.in\/blog\/wp-json\/wp\/v2\/posts\/3138","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/valugenius.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/valugenius.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/valugenius.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/valugenius.in\/blog\/wp-json\/wp\/v2\/comments?post=3138"}],"version-history":[{"count":23,"href":"https:\/\/valugenius.in\/blog\/wp-json\/wp\/v2\/posts\/3138\/revisions"}],"predecessor-version":[{"id":3166,"href":"https:\/\/valugenius.in\/blog\/wp-json\/wp\/v2\/posts\/3138\/revisions\/3166"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/valugenius.in\/blog\/wp-json\/wp\/v2\/media\/3148"}],"wp:attachment":[{"href":"https:\/\/valugenius.in\/blog\/wp-json\/wp\/v2\/media?parent=3138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/valugenius.in\/blog\/wp-json\/wp\/v2\/categories?post=3138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/valugenius.in\/blog\/wp-json\/wp\/v2\/tags?post=3138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}