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Rishi Chavan

Inquisitive • 1y

Can anyone please explain the term "Valuation" as seen on Shark Tank to me like a 5 year old?

Havish Gupta

Figuring Out • 1y

valuation means if you sell your company, how much money you will get. so imagine if i want your sinchan pillow, will you give it to me for free? absolutely no.. but what if i i offer you 2, 3 or 4 daily milk for it. Will you accept the deal? maybe.

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Rishi Chavan

Inquisitive • 1y

so if a company got a deal with a shark for 100 cr valuation then will it get sold at 100 cr only?

Havish Gupta

Figuring Out • 1y

no. that's not always the case. The valuation is based on current market conditions. So if today a new cartoon starts, then it's merch won't be that popular. But if it turns out to be very successful like hagemaru, then it merch, toys and trading c

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Rishi Chavan

Inquisitive • 1y

oh so it's mostly like a number given at time of making a deal

Havish Gupta

Figuring Out • 1y

yes. today I'm valuing one company for 100 cr, tomorrow it would be different. it can become 200,300 1000, or eveb 50cr.

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