company-valuation

Vocabulary Word

Definition

'Company valuation' is a term that tells us the worth or value of a business. It's like the total score of a company showing how rich and powerful it is compared to others.

Examples in Different Contexts

In startup funding, 'company valuation' determines the startup's worth before receiving investment, crucial for negotiations with investors. A startup founder might discuss, 'Based on our recent round of funding, the company valuation reflects our rapid growth and the scalability of our business model.'

Practice Scenarios

Public-Policy

Scenario:

With the recent changes in tax laws, it's important to ensure corporations are paying their fair share. We need to examine our approach to assessing them.

Response:

Yes, we should revise our company valuation procedures to implement fair taxation policies.

Business

Scenario:

Based on this financial report, we're seeing a substantial increase in the company's net worth. It's vital to understand the factors that have contributed to this growth.

Response:

Our company valuation rose primarily due to increased sales and cost-effective operations.