Company Valuations on Shark Tank - How I Do the Math as a DYSLEXIC Shark! | Daymond John #shorts

Here's how I break down company valuations on Shark Tank. And yes - I AM dyslexic!

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[Ryan-xhpe]

that’s what i do every time, if it’s not a factor of 5 tho i leave it to the sharks to tell me that lol

[leo_]

when in doubt, take the $ amount ask and divide it by the percent amount ask as a fraction. So if they want $456, 000 for 7.5% of the company, you’d do: 456, 000/0.075. That’ll give you the company’s total evaluation.

[MeMyselfAndBob]

That works for easy numbers and your method makes it fast and easy. But what’s the value of the equity when somebody offers you 17.25% for $345, 000 ? Than you take your calculator, put in 17.25 and press ‘%’ button, then press the ‘1/x’ button and multiply the result with 345, 000.
BTW: the sharks always value equity, NOT the company. When valuing the company you have to know how much debt it has, bonds, preferred shares, and how much cash and short-term investments. With that you calculate the enterprise value = market value of equity + market value of debt - cash - st investments.
This all gives you the market value, the price the market (the sharks and other investors) is willing to pay for the company. Better is using discounted future cash flow. The value of the company (corporate value) is the sum of all future free cash flow to the firm discounted at the weighted average cost of capital plus the continuing value (or terminal value) discounted at the risk-free interest rate. To find the value of equity you have to add the non-operating assets and substract the debt from the corporate value.

[drewkelly]

Total Price/equity %. For example 100k at 5% would be 100, 000/0.05 which is a 2mil valuation

[dylanwilliams]

This is how I’ve always done math it’s extra steps but faster

[caroleastmond]

He is a good shark,
and a good
teacher!!!💐💐💐💐💐💫

[Alexander-vllg]

I do the same when multiplying big numbers in my head. like 34 x 26 is really (30×26) + (4×26).
3x26 is 78 so 30×26 is 780. And then 4×26 is 104. Add them together and it 884.

[Kara-kxlb]

I laugh when they come there with a very low the percentage

[crawnyxx]

Or you can look at the 5% as (50%) and say if 5 is for 200, 000 then 50 would be $2M so a 100% $4M ...

[franciscobarrios]

as a person who wants to bring his app to shark tank, what do you look for in a start up? i am in beta stages now

[gunite]

Daymond where I can buy that Terry bear for my son

[JuanSilva-vsbq]

How did you know
To times it by the number 4? What was the reasoning or how did you get that number. Just wondering maybe I’m not paying attention to something in the video thank you Daymon

[ftswaee]

Wait so Barbara, Kevin, and Daymond all are dyslexic ? I knew about barb and Kevin but not Daymond

[DDRUTOU]

but how did you come up with the valuation of that hat?

[bonsolaire]

He can't just multiply 200, 000 by 20? No need to simplify

[ilax]

Most all inventions are amazing. Love when they are successful in getting a deal. Too bad the sharks are such dream crushers.
Mr top hat here is super obnoxious...