initial valuation

USAGE SUMMARY

The phrase "initial valuation" is correct and usable in written English.
It can be used in contexts related to finance, real estate, or any situation where an assessment or estimate of value is made at the beginning of a process. Example: "The initial valuation of the property was set at $500,000, based on comparable sales in the area."

✓ Grammatically correct

News & Media

Science

Human-verified examples from authoritative sources

Exact Expressions

26 human-written examples

Nonetheless, its initial valuation was almost thirteen billion dollars.

The New Yorker

Its initial valuation was therefore just seven times revenues.

The Guardian - Tech

That would be the largest value for a newly public United States company, beating U.P.S.'s $60.2 billion initial valuation, according to CommScan, a financial research firm.

The New York Times

The initial valuation was on the basis of being able to bottle lightning a second time, and very few companies have successfully done that".

The Guardian - Business

The social media giant's shares spent an extended period under their IPO offer price as investors balked at the initial valuation of $38 apiece.

Independent

When the initial valuation was high, the subsequent average was just 3%.Risky assets look more attractive now than they have in ages.

The Economist

Human-verified similar examples from authoritative sources

Similar Expressions

34 human-written examples

This epic loss clearly reflects frothy initial valuations, the decline in commodity prices and the recent sell-off in emerging markets.

The Economist

Increasing the haircuts for some securities would offer extra protection against the risk that initial valuations of collateral are too generous.When accepting collateral, the ECB could also restrict or ban the use of some securities that seem to have been created primarily to take advantage of central-bank funding.

The Economist

Oasis500 has doubled the stake it takes in start-ups in its programme to 20%, meaning that their initial valuations are cut in half.Once start-ups have found the few hundred thousand dollars required to expand, they must tackle the next hurdle: the region's fragmentation.

The Economist

In 2017, out of 16 unicorn IPOs, there were two at initial valuations above $10 billion (Snap and online insurer ZhongAn).

TechCrunch

The fee falls short of Liverpool's initial £80m valuation, and has not been accepted, but both sides appear convinced a deal can be done after their face-to-face negotiations over the 27-year-old.

The Guardian - Sport

Expert writing Tips

Best practice

When discussing the "initial valuation" of a company, be sure to specify the currency (e.g., USD, EUR) to avoid ambiguity.

Common error

Avoid using "initial valuation" interchangeably with "initial price". Valuation is an estimate of worth, while price is the amount something is sold for.

Linguistic Context

The phrase "initial valuation" functions as a noun phrase, typically serving as the subject or object of a sentence. It identifies the estimated worth or value assigned at the commencement of a business venture, asset appraisal, or financial process, similar to the examples found by Ludwig.

Expression frequency: Uncommon

Frequent in

News & Media

60%

Science

20%

Formal & Business

20%

Less common in

Wiki

0%

Encyclopedias

0%

Academia

0%

Ludwig's WRAP-UP

The phrase "initial valuation" is a noun phrase used to describe the estimated worth of an asset or company at its beginning. Ludwig AI confirms its grammatical correctness and applicability in various contexts, particularly in news and media, science, and formal business settings. When discussing "initial valuation", it's vital to differentiate it from similar terms like market capitalization or initial price, and it is used to establish a financial benchmark. It's important to specify the currency when providing the "initial valuation" to avoid ambiguity.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Preliminary assessment of value

Focuses on the evaluative process at the initial stage.

Initial assessment

Broader term that does not explicitly mention monetary value.

Baseline valuation

Indicates a reference point for future comparisons.

Starting price

Refers specifically to the price point established at the beginning.

Early-stage valuation

Focuses on valuation during the initial phases of a venture.

Original appraisal

Suggests a formal evaluation, often by a professional.

Initial market capitalization

Refers to the total value of a company's outstanding shares upon its initial offering.

First estimate

Emphasizes the approximate nature of the valuation.

Seed valuation

Indicates valuation during the seed funding stage of a startup.

Go-to-market valuation

Highlights the valuation when launching a product or company.

FAQs

How is "initial valuation" determined for a startup?

The "initial valuation" of a startup is often based on factors like projected revenue, market size, and comparable company valuations. Investors and founders negotiate to arrive at a number both deem reasonable.

What's the difference between "initial valuation" and market capitalization?

"Initial valuation" is a broader term referring to an estimated worth at the beginning of a process, while market capitalization specifically refers to the total value of a company's outstanding shares in the market. Market capitalization can fluctuate, while "initial valuation" is a fixed point in time.

What can I say instead of "initial valuation"?

You can use alternatives like "preliminary assessment of value", "initial assessment", or "first estimate", depending on the context.

Why is understanding the "initial valuation" of a company important?

Understanding the "initial valuation" is crucial for investors as it helps determine the potential return on investment and the risk involved. It also influences subsequent funding rounds and the overall financial health of the company.