Implied valuation

Also called: implied company value

In one line

A company's estimated total value worked back from a share price times the fully-diluted share count.

In plain English

Multiply the latest price per share by all the (fully-diluted) shares and you get the implied valuation. It's how a 'raised at $2B' headline is derived.

If you were explaining it to a 5-year-old

If one toy is priced at 2 coins and the club has 1,000 toys, the whole club is 'worth' 2,000 coins.

Why it matters when you sell

Working backfrom an implied valuation to a per-share figure helps you sanity-check what your own shares might be worth.

Put it to use

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Sources

A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.

Implied valuation

Related terms

Put it to use