Pre and Post Money Valuation Calculator
It refers to the value of a company that not includes external funding or the latest round of funding. Pre-money is described as how much a startup might be worth before it begins to receive any investments into the company. This valuation doesn't just give investors an idea of the current value of the business, but it also provides the value of each issue shared with the investors.
It refers that how much the company is worth after that company receives the money and investments into it. It also includes outside financing or the latest capital injection. It is important to know that what is being referred to, as they are critical concepts in the valuation of any company.
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Formula Of Pre And Post Money Valuation Calculator
To instantly calculate the pre and post-valuation, you can use the calculator, or to find it manually, you can use the formula listed below:
Post-money valuation = Investment / investor equity
So, if an investment worth $3,000 nets an investor 20%, the post-money valuation would be $15,000
$3000 / 20% = $15000
Pre-money valuation = Post-money valuation - investment
Note:
To calculate the dividend payout ratio, you can use our Dividend Payout Ratio Calculator.
Examples
Let us use the above example to demonstrate the pre-money valuation. In this case, the pre-money valuation is $12000. This value becomes when because we subtract the investment amount from the post-money valuation. Using the above formula, we calculate it as:
Given data
pre-money valuation = $12000
Solution
By using the formula listed below, we will find the pre and post-valuation:
Pre-money valuation = Post-money valuation - investment
Putting values in the formula:
$15000 - $3 million = $12000
How to use the Pre And Post Money Valuation Calculator?
The steps to use the pre and post-money valuation calculator are as follows:
Step 1: Enter the total investment value in the first required input.
Step 2: Enter the investor's equity in the second required input.
Step 3: The calculator will automatically display an answer on the screen.
Calculator use
To find the pre and post-money valuation, you can use our Pre-Money and Post-Money Valuation Calculator. Just enter the required values, and the answer will be shown on the screen.
