# SPAC valuations

Hi guys, does anyone know how valuations change when a SPAC finally merges ?

Where do I find out what the dilution would be for existing shareholders of the merging company and how would I calculate the valuation pre merger based on the market cap of the SPAC (black check company)?

Thanks chaps

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I am not an expert, however I guess that it is the following:
-Know the fraction of the â€śtarget companyâ€ť that the SPAC will represent. Letâ€™s call it â€śYâ€ť in %
-Know the market cap of the SPAC, letâ€™s call it â€śCapâ€ť

Therefore, market valuation of the target company at any point in time (based on the known SPAC) is = CAP x 100/Y

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How do I determine the â€ś Y â€ś in % ?

However, is this the formula they use in calculating the Fair or intrinsic value of a particular stock. ?

The way I understand - which is potentially wrong. If the SPAC will represent 20% of the target companys equity. The SPAC market cap needs to be multipled by 5. To get 100% equity (valuation)

Iâ€™m guessing the shares in the market (float) stays a at 20% after merger?

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