How accurate are estimated private company valuations?
January 21, 2016
The PitchBook Platform is home to the industry's largest set of private company valuations—97,247 to be exact. It's a number we've reached thanks to our research team's diligent method of collecting and verifying valuations. While we stand by our best-in-class valuation data, we wondered: Is a private company valuation something that can be estimated? This question became even more pertinent as some industry players have begun incorporating estimated valuations into their datasets.
We figured if anyone could achieve accurate estimations, it'd be us. So we challenged our data science team to deliver an answer to our question. Step one: Develop a model for estimating valuations. Step two: Test their accuracy rate.