|
|
Pre-Money Valuation |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Pre-Money ValuationPre-Money Valuation refers to the value of the company before an outside investment is made. Thus if a company has a pre-money valuation of $5 million, and a Venture Capitalist invests $10 million, then the Venture Capital firm will own 66% of the business after the investment ($10M / $15M = 66%)Similar MatchesDevaluationDevaluation1. Depreciation. 2. A fall in the value of a currency that has been pegged, either because of an announced reduction in the par value of the currency with the peg continuing, or because the pegged rate is abandoned and the floating rate declines. 3. A fall in the value of a currency in terms of gold or silver, meaningful only under some form of gold standard or silver standard. ValuationValuationThe value or worth of a portfolio of investments recorded on a statement. Currency overvaluationCurrency overvaluationApplies mainly to international equities: (1) consideration that a currency is overvalued if private demand for the currency at the going exchange rate is less than total private supply (i.e., central banks are buying up the difference, supporting the value of the currency through foreign exchange intervention); (2) currency value exceeding purchasing power parity. Valuation Opportunity CostValuation Opportunity CostThe potential increase in firm value associated with investments that are for gone due to capital rationing. DevaluationDevaluationA decrease in the spot price of a currency. Often initiated by a government announcement. Further SuggestionsAssessed valuationValuation Clause devaluation Customs valuation Basic valuation Investment Valuation Model (IVM) Revaluation Currency devaluation Currency revaluation |
|
|
|