Implied Valuation

The implied valuation is the value of the company that is implicit in the offering price per share. It is calculated by multiplying the offering price by the Fully Diluted Shares Outstanding. For example, Company A raised a Series E round last year at a $2.0 Bn valuation and they had 100 million Fully Diluted Shares Outstanding (and therefore a share price of $20). If an investor purchases shares at a 20% discount to the last valuation, the implied valuation would be $1.6 Bn ($20 x 80% x 100 M shares).