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Valuation for Startups Using Multiple Approach

In addition to discounted cash flow method, multiple method is one of the most popular methods of firm valuation. PER is often used among financial professionals to make a quick-and-dirty estimate of a firm value. In this course, you are going to learn the concept and usage of PER, PBR and PSR. In addition to these basic multiple ratios, you are going to learn how to make an estimate of enterprise value and founder’s ownership before and after additional funding. Startups require a number of financings before IPO. After taking this course, you are going to be able to answer questions such as What the price per share should be given the startup’s estimate of earnings in the future; How many shares the founder should give up to raise additional capital; and so on? In the discounted cash flow method and multiple method, you are always given earnings or cash flows to make estimate of firm value. In this course, you are also going to learn how to generate cash flows or earnings from the financial statements. After taking this course, you will be able to understand the meaning of financial statements such as balance sheet, income statement and cash flow calculation.

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Syllabus

Valuation Based on Comparable Firms

In company valuation, the most often used multiples are PER, PBR, and PSR. PER is the ratio of stock price per share to earnings per share. Since most startups have negative earnings, you cannot use PER in starup. It is the reason why you should know PBR or PSR for startup valuation. After this module, you will be able to explain the concept of those multiples and calculate them easily.

Pre & Post-money valuation

Investors often talk about the pre-money or post-money valuation of a company at the time they invest. This module will introduce you to concepts of pre-money and post-money valuation. By the end of this module, you can distinguish pre-money and post-money valuation.

Financial Statements

Financial statements summarize information about a firm. In order to evaluate and diagnose performance for your startup, your first step is to assess the company’s current condition and interpret financial statements. Thus, through this module, you will briefly learn main financial statements: balance sheet, income statement, and cash flow statement.

Cash Flow

In this module, you will learn cash flow identity which consists of cash flow to assets and cash flow to creditors and stockholders. Furthermore, you are able to calculate cash flow. Basically, this module is strongly related to module 3, financial statements. Students are encouraged to review all contents in module 3. Lastly, wrap-up review lecture are provided.

Case Study

In this module, you will deal with Ysom, Inc which was founded in 2015 by Professor Shin and Professor Lee. The purpose of this module is to compute cash flows and create financial statements what you have learned during four weeks.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Explores valuation of companies, which is standard in finance

Taught by Hyun Han Shin, who is recognized for their work in multiple method

Develops knowledge of financial ratios and cash flow statements, which are core skills for financial analysis

Examines multiple method, which is highly relevant to startup valuation

Covers pre-money and post-money valuation, which is important for startup financing

Case study format allows learners to apply concepts to real-world scenarios

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Reviews summary

Valuation for startups w/ multiple approaches

Learners say this course features engaging assignments. Lectures are clear, but there may be inaccuracies in the course's materials.

Lectures are presented clearly.

"The instructor is quite clear and the 1 or 2 instances where something was not clear, or when a concept needed clarification, the teaching staff were quite prompt with responding."

Inconsistent instructions for rounding off numbers in calculations.

"Biggest issue is with the quiz, when to round off and when to keep the actual values."

"the instructions given tend to be stated like this, 'please round off to 2dp and present as percent'"

Terminology may be inconsistent within lessons.

"materials prepared are easy to understand and rather simplified, however sometimes the terms used in between lessons are inconsistent"

There may be errors in grading and course materials.

"grading method is totally unacceptable"

"so many mistakes in the answers"

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Valuation for Startups Using Multiple Approach with these activities:

Read a book on financial valuation

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By reading a book on financial valuation, you can reinforce the concepts and techniques covered in the course, gain a deeper understanding of the subject matter, and prepare for the readings and problem sets during the course.

View Valuation: Measuring and Managing the Value of... on Amazon

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Choose a book on financial valuation that aligns with your interests and learning goals.
Set aside dedicated time for reading and studying the book.
Take notes while reading to enhance your understanding and retention.
Engage in active recall by summarizing and explaining the concepts to yourself or others.
Complete any exercises or practice problems included in the book to test your understanding.

Solve practice problems on financial valuation

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Regularly solving practice problems on financial valuation can help you strengthen your understanding of the concepts and techniques covered in the course.

Browse courses on Financial Valuation

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Find practice problems from textbooks, online resources, or the course materials.
Set aside dedicated time for solving practice problems.
Work through the problems carefully, showing all your calculations and reasoning.
Check your answers against the provided solutions or discuss them with classmates or the instructor.
Identify areas where you need further clarification or practice.

Watch video tutorials on financial valuation

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Watching video tutorials on financial valuation can provide a more interactive and engaging way to learn about the concepts and techniques covered in the course.

Browse courses on Financial Valuation

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Find video tutorials on financial valuation from reputable sources.
Set aside dedicated time for watching and learning from the video tutorials.
Take notes while watching the tutorials to enhance your understanding and retention.
Pause the videos and rewind if necessary to ensure you understand the concepts being explained.
Consider watching the same tutorial multiple times to reinforce your learning.

Five other activities

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Form a study group with classmates

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Collaboration with peers can be an effective way to reinforce your learning, clarify concepts, and prepare for assessments.

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Identify classmates who are interested in forming a study group.
Set regular meeting times and locations.
Create a study plan that outlines the topics and materials to be covered.
Take turns leading discussions and facilitating group activities.
Support each other in understanding the material and preparing for the course.

Solve Practice Problems on Valuation Multiples

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Solving practice problems on valuation multiples will help you develop a deeper understanding of how to use these multiples to value companies, which is a key skill in this course.

Browse courses on Valuation Multiples

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Gather practice problems on valuation multiples from online resources or textbooks.
Solve the practice problems step-by-step.
Check your answers against the provided solutions or consult with a tutor or instructor if you encounter any difficulties.

Develop a financial model for a startup

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Building a financial model for a startup will allow you to apply the concepts and techniques learned in the course to a real-world scenario, enhancing your understanding of how to value and analyze businesses.

Browse courses on Financial Modeling

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Gather financial data and information about the startup.
Choose appropriate financial modeling techniques and assumptions.
Construct a financial model using a spreadsheet or financial modeling software.
Analyze the model's outputs and make recommendations based on your findings.
Present your financial model and analysis to others for feedback and insights.

Participate in workshops on financial valuation

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Participating in hands-on workshops can reinforce your understanding of financial valuation concepts and provide opportunities to apply them to real-world scenarios.

Browse courses on Financial Valuation

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Identify and register for financial valuation workshops.
Prepare for the workshop by reviewing the materials and completing any pre-work.
Attend the workshop and actively participate in the activities and discussions.
Apply the concepts and techniques learned in the workshop to your own work or projects.
Network with other participants and instructors at the workshop.

Attend industry events on financial valuation

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Attending industry events on financial valuation can provide opportunities to network with professionals in the field, learn about current trends and best practices, and gain insights into the practical applications of financial valuation.

Browse courses on Financial Valuation

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Identify and register for industry events on financial valuation.
Prepare yourself by researching the event and potential attendees.
Attend the event and actively participate in discussions and networking opportunities.
Follow up with any connections you make at the event.
Reflect on the insights and knowledge gained from the event.

Career center

Learners who complete Valuation for Startups Using Multiple Approach will develop knowledge and skills that may be useful to these careers:

Valuation Analyst

Valuation Analysts value businesses and other assets for a variety of purposes, such as mergers and acquisitions, estate planning, and litigation. This course would be very useful for individuals in this field.

See salaries and explore the career path for Valuation Analyst

Venture Capital Associate

Venture Capital Associates work for venture capital firms, which invest in early-stage companies. They help to identify and evaluate potential investment opportunities, and they monitor the performance of portfolio companies. This course may be useful for Venture Capital Associates because it provides an overview of financial valuation techniques and financial statement analysis, which are both essential skills for this role.

See salaries and explore the career path for Venture Capital Associate

Private Equity Associate

Private Equity Associates work for private equity firms, which invest in companies that are not publicly traded. They help to identify and evaluate potential investment opportunities, and they monitor the performance of portfolio companies. This course may be useful for Private Equity Associates because it provides an overview of financial valuation techniques and financial statement analysis, which are both essential skills for this role.

See salaries and explore the career path for Private Equity Associate

Portfolio Manager

Portfolio Managers manage investment portfolios for individuals and institutions. They make decisions about which investments to buy and sell, and they monitor the performance of their portfolios. This course may be useful for Portfolio Managers because it provides an overview of financial valuation techniques and financial statement analysis, which are both essential skills for this role.

See salaries and explore the career path for Portfolio Manager

Financial Risk Manager

Financial Risk Managers identify, assess, and mitigate financial risks for companies. They use their knowledge of finance, risk management, and modeling to develop and implement risk management strategies. This course may be useful for Financial Risk Managers because it provides an overview of financial valuation techniques and financial statement analysis, which are both essential skills for this role.

See salaries and explore the career path for Financial Risk Manager

Investment Banker

Investment Bankers help companies raise capital by issuing and selling securities, such as stocks and bonds. They also advise companies on mergers and acquisitions and other financial transactions. This course may be useful for Investment Bankers because it provides an overview of financial valuation techniques, which are essential for this role.

See salaries and explore the career path for Investment Banker

Corporate Finance Analyst

Corporate Finance Analysts help companies make financial decisions, such as how to raise capital, how to invest their money, and how to manage their debt. This course may be useful for Corporate Finance Analysts because it provides an overview of financial valuation techniques and financial statement analysis, which are both essential skills for this role.

See salaries and explore the career path for Corporate Finance Analyst

Equity Research Analyst

Equity Research Analysts research and analyze companies and their industries to make recommendations about whether to buy, sell, or hold their stocks. This course may be useful for Equity Research Analysts because it provides an overview of financial valuation techniques and financial statement analysis, which are both essential skills for this role.

See salaries and explore the career path for Equity Research Analyst

Financial Analyst

Financial Analysts interpret and communicate the financial performance of a company or other organization. They use their knowledge of accounting, finance, and economics to analyze financial data and make recommendations about investments, budgeting, and other financial decisions. This course may be useful for Financial Analysts because it provides an overview of financial statements and cash flow analysis, which are both essential skills for this role.

See salaries and explore the career path for Financial Analyst

Financial Planner

Financial Planners help individuals and families plan for their financial future. They provide advice on investments, retirement planning, estate planning, and other financial matters. This course may be useful for Financial Planners because it provides an overview of financial valuation techniques and financial statement analysis, which are both essential skills for this role.

See salaries and explore the career path for Financial Planner

Auditor

Auditors examine and evaluate the financial records of companies to ensure that they are accurate and compliant with regulations. This course may be useful for Auditors because it provides an overview of financial statement analysis, which is an essential skill for this role.

See salaries and explore the career path for Auditor

Business Consultant

Business Consultants help businesses improve their performance. They provide advice on a variety of topics, including finance, operations, and marketing. This course may be useful for Business Consultants because it provides an overview of financial valuation techniques and financial statement analysis, which are both essential skills for this role.

See salaries and explore the career path for Business Consultant

Forensic Accountant

Forensic Accountants investigate financial fraud and other financial crimes. They use their knowledge of accounting, finance, and auditing to uncover and document financial wrongdoing. This course may be useful for Forensic Accountants because it provides an overview of financial statement analysis, which is an essential skill for this role.

See salaries and explore the career path for Forensic Accountant

Tax Accountant

Tax Accountants prepare and file tax returns for individuals and businesses. They also advise clients on tax planning and compliance. This course may be useful for Tax Accountants because it provides an overview of financial statement analysis, which is an essential skill for this role.

See salaries and explore the career path for Tax Accountant

Actuary

Actuaries use mathematical and statistical techniques to assess risk and uncertainty. They work in a variety of industries, including insurance, finance, and healthcare. This course may be useful for Actuaries because it provides an overview of financial valuation techniques and financial statement analysis, which are both essential skills for this role.

See salaries and explore the career path for Actuary

Reading list

We've selected 22 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Valuation for Startups Using Multiple Approach.

Valuation

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Provides a comprehensive overview of valuation methods, including discounted cash flow, multiples, and precedent transactions. It valuable resource for anyone who wants to learn more about the theory and practice of valuation.

Valuation for Startups Using Multiple Approach

Three deals to help you save

What's inside

Syllabus

Good to know

Save this course

Reviews summary

Valuation for startups w/ multiple approaches

Activities

Career center

Reading list

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