Back

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

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.

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

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

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

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

thanks bro, great explanation.

glad you learnt it.. Im sure you will became a billionaire as soon as you turn 6 😅