Valuation Glossary

Browse 17 valuation terms defined in plain English, from the cultural dictionary of computing.

17 Valuation Terms

Contingent Valuation
A valuation approach or deal concept where final value depends on future conditions, milestones, or outcomes rather than being fixed entirely upfront. It often...
Decacorn
A privately held company valued at $10 billion or more. When 'unicorn' started feeling common, the mythological creatures got bigger.
Down Round
A funding round where a company raises capital at a lower valuation than its previous round. Generally considered a bad signal, it dilutes existing...
Enterprise Value
A valuation measure that reflects the total value of a business, typically including equity value plus debt and minus cash. It is often used in acquisitions...
Exit Multiple
The multiple of revenue, EBITDA, or invested capital associated with an eventual sale or public-market outcome. Investors model exit multiples to estimate...
Flat Round
A financing round raised at roughly the same valuation as the previous round rather than at a step-up valuation. Flat rounds can preserve continuity but may...
Forward Revenue
Expected future revenue over an upcoming period, often used in planning or valuation multiples rather than historical reporting. Forward revenue matters most...
Future Valuation
The expected value a company may justify in a later financing or exit based on projected growth, market conditions, and milestones. Founders and investors use...
Market Cap
Market capitalization, the total equity value of a public company calculated as share price multiplied by shares outstanding. It is a common shorthand for...
Post-Money Valuation
The value of a company immediately after new investment capital is added, equal to pre-money valuation plus the amount raised. Post-money matters because...
Pre-Money Valuation
The value of a company immediately before new investment capital is added in a financing round. It is the starting point for calculating post-money valuation...
Revenue Multiple
A valuation measure expressed as enterprise value or market value divided by revenue, often used for software and growth companies where profit may still be...
Startup Valuation
The estimated value assigned to a startup in fundraising or transaction contexts, often influenced by growth potential, comparables, market conditions, and...
Unicorn
Unicorn is a privately held startup company valued at one billion dollars or more. The term was coined by venture capitalist Aileen Lee in 2013 because such...
Unlevered
Describing a company, asset, or financial analysis that excludes the effects of debt leverage. In startup and finance discussions, unlevered views are useful...
Up Round
A financing round raised at a higher valuation than the previous round. Up rounds signal progress and market confidence, though the quality of the underlying...
Valuation Multiple
A ratio used to value a company by comparing value to a financial metric such as revenue, EBITDA, or earnings. Valuation multiples help benchmark companies,...

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