00:00Before you invest your hard-earned money in a company, you must ask,
00:04is this business really worth what it claims? Remember, its growth and performance will
00:09definitely impact your returns. Let's break down how to find out.
00:15Valuation is a smart way of figuring out how much a company is worth, whether you are owning,
00:20investing or raising funds. In simple terms, valuation means checking everything,
00:26profits, assets, growth plans, competition and investor demand to arrive at a value.
00:32Now let's talk about how to actually figure out a company's value in simple goods.
00:38Discounted cash flow try to guess how much money the company will make in future.
00:44Then calculate how much that's worth today. Comparable company analysis see how similar
00:51companies are valued in the market. And then compare this one to them.
00:56Precedent transactions. Check past deals. How much were similar companies sold for before?
01:02This gives you a good idea. Asset-based valuation. Just take everything the company means,
01:07minus what it hopes. That's its value. Market cap. For listed companies.
01:13Multiply the stock price by number of shares. That's how much the market thinks it's worth.
01:18For startups with more stable income yet, use DCF, scorecard valuation or compare
01:25pre-mini vs post-mini value when raising capital. There is no one-size-fits-all.
01:31The right method depends on your industry, purpose and the business ditch.
01:36Follow Navia Markets for more. Investments in securities markets are
01:39subject to market risk. Read all related documents carefully before investing.
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