How to Calculate Capitalization_

The video tutorial explains the concept of capitalization in business, focusing on its definition, use in funding transactions, and as a measure of a firm's total value. It details market capitalization, particularly for publicly traded companies, and highlights the challenges in valuing startups due to their lack of public trading and retained earnings. The tutorial explores various valuation methods, including comparables, discounted cash flow, and asset valuation, noting their applicability in different business contexts. It concludes by summarizing the ways capitalization is used in both mature and startup ventures.

What does capitalization strictly refer to in the context of business?

How is market capitalization calculated for publicly traded companies?

Why is the initial investment not a good indicator of a startup's value?

What are some common methods used to value startup ventures?

Why might asset valuation not be a good indicator of a company's worth?