Enter the current valuation ($) and the historical valuation ($) into the Calculator. The calculator will evaluate the Valuation Percentage. 

Valuation Percentage Formula

VP = CV / HV * 100

Variables:

  • VP is the Valuation Percentage (%)
  • CV is the current valuation ($)
  • HV is the historical valuation ($)

To calculate the Valuation Percentage, divide the current valuation by the historical or maximum valuation, then multiply by 100.

How to Calculate Valuation Percentage?

The following steps outline how to calculate the Valuation Percentage.

  1. First, determine the current valuation ($). 
  2. Next, determine the historical valuation ($). 
  3. Next, gather the formula from above = VP = CV / HV * 100.
  4. Finally, calculate the Valuation Percentage.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

current valuation ($) = 140000

historical valuation ($) = 1230000

FAQs

What is the importance of calculating the Valuation Percentage?

Calculating the Valuation Percentage is crucial for investors and business owners to understand the growth or decline in the value of a business or asset over time. It helps in making informed decisions regarding investments, sales, and acquisitions.

How can the Valuation Percentage impact investment decisions?

A higher Valuation Percentage indicates an increase in value, potentially signaling a good investment opportunity. Conversely, a lower percentage could indicate a decrease in value, suggesting caution. Investors use this metric to assess the timing and potential return on investments.

Are there limitations to using the Valuation Percentage formula?

Yes, the Valuation Percentage formula does not account for external factors such as market conditions, competitive landscape, or economic changes that might affect valuation. It should be used as one of several tools for valuation analysis.

Can the Valuation Percentage be applied to any type of asset or business?

While primarily used for business valuation, the concept of Valuation Percentage can be applied to various assets, including real estate, stocks, and personal property. However, the specifics of the calculation may vary depending on the asset’s nature.