Pre-Money vs Post Money Valuation
Basic question. Let's assume the following
Net Debt as of today is $0 Year 1 Sales (LTM) - $10 Year 2 Sales (1 year forward)- $20 Year 3 Sales (2 year forward)- $30
I am looking to invest $5 today (primary infusion) at an EV/Sales (1 year forward) multiple of 4. This means my EV is $80 and given Net Debt today is $0, my equity value is $80.
My question is - is $80 the pre-money valuation meaning $85 is post money or is $80 my post money valuation meaning $75 is pre-money? Thank you.