In this blog, we will find out how to calculate the net worth of celebrities by different means like evaluating the cost of private and public assets. Whenever we see big A-listed celebrities we all must be thinking about their net worth. We all think that where celebrities spend their worth and about their luxurious life. But we never thought of how their net worth is calculated. Is this amount even justified?
So whenever you search about the net worth of certain celebrities on the Internet it’s just an estimate. Even that estimation is science on its own. You cannot find the exact figure of their net worth by having access to their bank accounts, their assets, and tax filing but you can make an estimation. So on many websites, you see the net worth of certain celebrities which is just guesswork.
How to calculate the net worth of celebrities?
The first thing before we move towards the calculation of the net worth of any celebrity is to define net worth. What does net worth mean? It is defined as the addition and sum of all the assets excluding the liabilities. It is defined as worth that is left or obtained after paying all the debts and amounts. So if we want to estimate someone’s worth we should be knowing all about their assets and liability and then we can get the net worth by subtracting these from the actual figure.
Some people might be thinking this is child’s play to get access to their personal information. In addition to that many celebrities invest their money and assets without unveiling their name rather they use the name of the company. So when you search the net worth of any celebrity you will never get the correct figure because it is only an estimate based on incomplete data.
So next time whenever you search for the net worth of any celebrity keep in mind that it is not an actual figure but most of us consider that figure true. It could be from one million dollars to a hundred million dollars. Moreover, the is no harm to such websites for putting out the wrong information.
Death or divorce is what does it take?
When a celebrity dies all their assets and worth are made public and from that, we can get the exact figure of their net worth. Similarly, when a divorce happens between a celebrity and the couple then during questioning of the assets in the court then the information leaks regarding their net worth.
But this process is not simple there are several steps involved while getting the estimate. Below is discussed that how agencies get the important information:
Ask celebrity:
Some celebrities don’t feel secure while sharing information regarding their net worth and assets in public while some show off while doing so. If they tell something in front of the media then you are not always sure whether they are telling the truth or lying.
So some celebrities discuss their net worth in front of people like in front of social media, posting pictures on the internet, etc. While hesitating to talk about this. So people should respect their choices and decision.
Assessing and analyzing their public assets:
You can get an estimate regarding the net worth of the celebrities if the information regarding their share is held by the celebrity in the respective company. So you can take the required information from the companies.
Some people don’t buy property by their name, they just take the advantage of some companies for buying a certain property, on the other hand, the same person will be controlling the whole company.
Assessing and analyzing their private assets:
We can determine the worth of the assets of a celebrity by comparing it with the cost of assets of the same value. For example, if a celebrity has bought an apartment in London, then you can estimate the cost by knowing the value of neighboring apartments. You can get the information by evaluating the sale of the document, records, and respective data.
Sponsorship contracts:
We will first define what is sponsorship contract. This is a business contract between a business and any company including terms and conditions.
You can get to know the contract amount if the two parties agree to announce it publically otherwise you will never know what deal has been done between the two.
By estimating the number of different contracts signed by them, we can find some percentage of their net worth.
The companies and websites that put the net worth of celebrities are just guesswork and an estimate based on incomplete information. The calculated value of assets is much lower than the original value in reality. The reason is that celebrities do not buy the assets in their name but under the name of the company, as a shareholder, and data of which is now announced publically.
For instance, a few times back the assets of the bill gates come in front of people. It was stated that Bill Gates is the owner of private farmland in the USA. It was told that he owned farmland more than the entire native American community. He bought the farmlands under the name of the company and he was controlling that company. So people knew that his net worth is 700 million dollars which was full of inaccuracies.
Conclusion:
In this article, the different ideas and methods for calculating the net worth of celebrities have been discussed that how different companies calculate the net worth of celebrities.
All the mentioned net worth on the internet of the big and renowned celebrities is the estimated cost, not the exact value. There are different ways of calculating net worth i.e. By asking celebrities, evaluating public and private assets, and analyzing their contracts.