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Hyun Han Shin

This is a peer review course. In the capstone project, you are going to apply what you have learned in the previous courses. The final output from this project is an estimation of a firm. You can choose either a public company or a startup depending on the availability of information on the firm. If you have your own startup, then you can do this capstone project on the startup. If not, then you can do this project of a public company. Therefore, the first step is selecting an actual company that you are interested in. Next, you have to do the research on and describe the firm’s industry and business. Based on your research, you make an estimate of firm’s growth, cash flows and earnings. In order to do this, you need to apply what you have learned in financial statement analysis. Once you find firm’s cash flows and earnings, you can apply what you have learned in discounted cash flow method and multiple methods to find the value of the company. In addition to the valuation, you will be given a hypothetical project and have to decide whether to take the project if the opportunity is given to the company of your choice. Be doing this Capstone project, you will complete your understanding of valuation and financial analysis of startups.

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What's inside

Syllabus

Introduction to Capstone Project
For Capstone Project, you are allowed to select a startup of your own choice. Then describe the company in detail such as business industry, competitors (or company) and service or product.
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Capstone Project I
For Capstone Project I, you will investigate historical performance of the startup that you select. You need to collect financial statements at least 3 years and need to make up numbers for the startup with reasonable assumptions.
Capstone Project II
For Capstone Project II, you will calculate free cash flow of the startup. In order to estimate free cash flows, you need to make pro forma statements of the startup and estimate external financing needed. Also, calculate internal growth rate and sustainable growth rate.
Capstone Project III
For Capstone Project III, you will find value of the startup using Multiple approach and Discount Cash Flow approach. In specific, you will apply multiple and DCF approach to find terminal value of the startup. After finding the value of a startup, consider the situation where startup finances external financing needed using new investment from venture capitalists.
Capstone Project IV
For Capstone Project IV, you will think of an investment opportunity that your startup is likely to face in the near future and determine whether you would accept the investment using capital budgeting techniques. After estimating yearly cash flows of the project, apply three major capital budgeting techniques, NPV, IRR, and payback period, to determine whether you should accept the project.

Good to know

Know what's good
, what to watch for
, and possible dealbreakers
Designed for those who wish to increase their skillset in corporate finance
Suitable for those considering jobs in corporate finance, management, or entrepreneurship
Exploration of financial statement analysis, discounted cash flow method, and multiple methods is industry standard
Incorporating hypothetical projects enhances real-world applicability
Completing this course not only enhances knowledge but understanding of valuation concepts

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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 and Financial Analysis For Startups Capstone with these activities:
Find a mentor in the startup industry
Connect with experienced professionals in the startup industry to gain valuable insights and guidance.
Browse courses on Mentorship
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  • Attend industry events and meetups.
  • Reach out to people in your network who work in the startup industry.
  • Use LinkedIn to search for potential mentors.
Practice financial statement analysis
Reinforce your understanding of financial statement analysis by practicing on real-world examples.
Show steps
  • Gather financial statements from at least three different companies.
  • Analyze the financial statements to identify key metrics such as revenue, expenses, and net income.
  • Compare the financial performance of the companies and identify trends.
Create a financial model for a startup
Develop your financial modeling skills and gain hands-on experience by creating a financial model for a startup.
Browse courses on Financial Modeling
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  • Gather data on the startup's industry, market, and financial performance.
  • Build a financial model that includes income statements, balance sheets, and cash flow statements.
  • Use the financial model to forecast the startup's future financial performance.
  • Analyze the financial model to identify potential risks and opportunities.
Three other activities
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Practice discounted cash flow analysis
Build your proficiency in discounted cash flow analysis by working through practice problems.
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  • Identify a company or project to value.
  • Estimate the company's or project's future cash flows.
  • Discount the cash flows back to the present using an appropriate discount rate.
  • Calculate the present value of the cash flows to determine the company's or project's value.
Estimate the value of a startup
Apply your knowledge and skills to estimate the value of a real-world startup.
Browse courses on Startup Valuation
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  • Select a startup to value.
  • Gather data on the startup's industry, market, and financial performance.
  • Apply multiple valuation methods, such as discounted cash flow analysis and comparable company analysis.
  • Write a report summarizing your valuation findings.
Create a pitch deck for a startup
Develop your entrepreneurial skills by creating a pitch deck that could help a startup secure funding.
Browse courses on Pitch Deck
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  • Develop a compelling story about the startup's mission, team, and product.
  • Create slides that present the startup's market opportunity, competitive landscape, and financial projections.
  • Design a pitch deck that is visually appealing and easy to follow.
  • Practice presenting the pitch deck to potential investors.

Career center

Learners who complete Valuation and Financial Analysis For Startups Capstone will develop knowledge and skills that may be useful to these careers:
Analista Financiero
Los analistas financieros ayudan a las empresas a tomar decisiones de inversión sólidas. Este curso proporciona una base sólida en los principios de valoración y análisis financiero, lo que les permite a los estudiantes desarrollar las habilidades necesarias para evaluar empresas y tomar decisiones de inversión informadas. Además, el curso cubre métodos de flujo de efectivo descontado y métodos múltiples, que son herramientas esenciales para los analistas financieros.
Gestor de Inversiones
Los gestores de inversiones gestionan carteras de inversiones para individuos y organizaciones. Este curso proporciona una base sólida en los principios de valoración y análisis financiero, lo que permite a los estudiantes desarrollar las habilidades necesarias para evaluar empresas y tomar decisiones de inversión informadas. Además, el curso cubre métodos de flujo de efectivo descontado y métodos múltiples, que son herramientas esenciales para los gestores de inversiones.
Analista de capital riesgo
Los analistas de capital riesgo evalúan empresas emergentes y oportunidades de inversión. Este curso proporciona una base sólida en los principios de valoración y análisis financiero, lo que permite a los estudiantes desarrollar las habilidades necesarias para evaluar empresas emergentes y tomar decisiones de inversión. Además, el curso cubre métodos de flujo de efectivo descontado y métodos múltiples, que son herramientas esenciales para los analistas de capital riesgo.
Banquero de Inversión
Los banqueros de inversión asesoran a empresas sobre fusiones y adquisiciones, ofertas públicas iniciales (OPI) y otras transacciones financieras. Este curso proporciona una base sólida en los principios de valoración y análisis financiero, lo que permite a los estudiantes desarrollar las habilidades necesarias para evaluar empresas y asesorar a los clientes sobre transacciones financieras. Además, el curso cubre métodos de flujo de efectivo descontado y métodos múltiples, que son herramientas esenciales para los banqueros de inversión.
Asesor Financiero
Los asesores financieros ayudan a individuos y familias a planificar y administrar sus finanzas. Este curso proporciona una base sólida en los principios de valoración y análisis financiero, lo que permite a los estudiantes desarrollar las habilidades necesarias para evaluar empresas y asesorar a los clientes sobre decisiones de inversión. Además, el curso cubre métodos de flujo de efectivo descontado y métodos múltiples, que son herramientas esenciales para los asesores financieros.
Director Financiero
Los directores financieros son responsables de gestionar las finanzas de una empresa. Este curso proporciona una base sólida en los principios de valoración y análisis financiero, lo que permite a los estudiantes desarrollar las habilidades necesarias para evaluar las finanzas de una empresa y tomar decisiones financieras informadas. Además, el curso cubre métodos de flujo de efectivo descontado y métodos múltiples, que son herramientas esenciales para los directores financieros.
Contador
Los contadores preparan y auditan estados financieros. Este curso proporciona una base sólida en los principios de valoración y análisis financiero, lo que permite a los estudiantes desarrollar las habilidades necesarias para evaluar los estados financieros de una empresa y garantizar su precisión. Además, el curso cubre métodos de flujo de efectivo descontado y métodos múltiples, que pueden ser útiles para los contadores en ciertas situaciones.
Investigador de inversiones
Los investigadores de inversiones analizan empresas y mercados para identificar oportunidades de inversión. Este curso proporciona una base sólida en los principios de valoración y análisis financiero, lo que permite a los estudiantes desarrollar las habilidades necesarias para evaluar empresas y tomar decisiones de inversión. Además, el curso cubre métodos de flujo de efectivo descontado y métodos múltiples, que son herramientas esenciales para los investigadores de inversiones.
Economista
Los economistas estudian el comportamiento de las economías y los mercados. Este curso proporciona una base sólida en los principios de valoración y análisis financiero, lo que permite a los estudiantes desarrollar las habilidades necesarias para analizar los mercados financieros y tomar decisiones económicas informadas. Además, el curso cubre métodos de flujo de efectivo descontado y métodos múltiples, que pueden ser útiles para los economistas en ciertas situaciones.
Analista de Datos Financieros
Los analistas de datos financieros utilizan datos para analizar tendencias financieras y tomar decisiones informadas. Este curso proporciona una base sólida en los principios de valoración y análisis financiero, lo que permite a los estudiantes desarrollar las habilidades necesarias para recopilar, analizar e interpretar datos financieros. Además, el curso cubre métodos de flujo de efectivo descontado y métodos múltiples, que pueden ser útiles para los analistas de datos financieros en ciertas situaciones.
Planificador Financiero
Los planificadores financieros ayudan a individuos y familias a planificar y administrar sus finanzas. Este curso proporciona una base sólida en los principios de valoración y análisis financiero, lo que permite a los estudiantes desarrollar las habilidades necesarias para evaluar las finanzas de una persona y ayudarla a alcanzar sus objetivos financieros. Además, el curso cubre métodos de flujo de efectivo descontado y métodos múltiples, que pueden ser útiles para los planificadores financieros en ciertas situaciones.
Consultor de gestión
Los consultores de gestión ayudan a las empresas a mejorar su rendimiento. Este curso proporciona una base sólida en los principios de valoración y análisis financiero, lo que permite a los estudiantes desarrollar las habilidades necesarias para evaluar el desempeño de una empresa y brindar recomendaciones para mejorar. Además, el curso cubre métodos de flujo de efectivo descontado y métodos múltiples, que pueden ser útiles para los consultores de gestión en ciertas situaciones.
Analista de Riesgo
Los analistas de riesgo evalúan el riesgo de las inversiones. Este curso proporciona una base sólida en los principios de valoración y análisis financiero, lo que permite a los estudiantes desarrollar las habilidades necesarias para evaluar el riesgo de las inversiones y tomar decisiones informadas. Además, el curso cubre métodos de flujo de efectivo descontado y métodos múltiples, que pueden ser útiles para los analistas de riesgo en ciertas situaciones.
Científico de datos
Los científicos de datos utilizan datos para resolver problemas empresariales. Este curso proporciona una base sólida en los principios de valoración y análisis financiero, lo que permite a los estudiantes desarrollar las habilidades necesarias para recopilar, analizar e interpretar datos financieros. Además, el curso cubre métodos de flujo de efectivo descontado y métodos múltiples, que pueden ser útiles para los científicos de datos en ciertas situaciones.
Profesor
Los profesores enseñan a estudiantes en escuelas y universidades. Este curso proporciona una base sólida en los principios de valoración y análisis financiero, lo que permite a los estudiantes desarrollar las habilidades necesarias para enseñar estos conceptos a otros. Además, el curso cubre métodos de flujo de efectivo descontado y métodos múltiples, que pueden ser útiles para los profesores en ciertas situaciones.

Reading list

We've selected 35 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 and Financial Analysis For Startups Capstone.
Provides a comprehensive overview of various analytical tools and techniques for financial statement analysis. It can serve as a valuable reference for students aiming to enhance their analytical skills.
Provides a practical guide to starting and running a successful business. It valuable resource for entrepreneurs who are looking for advice and inspiration.
Provides an overview of venture capital and the financing of innovation, which is essential background knowledge for understanding the valuation and financial analysis of startups.
Provides a framework for marketing and selling technology products to mainstream customers. It valuable resource for entrepreneurs who are looking to scale their businesses.
Provides a practical guide to using the lean product development process to create successful products. It valuable resource for entrepreneurs who are looking to develop products that customers love.
Introduces the concept of the "lean startup" methodology, which process for developing and testing new products and services. It valuable resource for entrepreneurs who are looking to build successful businesses.
Classic guide to investing. It would be a valuable resource for students in this course, as it would provide them with a framework for making sound investment decisions.
Considered as one of the classic works on value investing, this book offers insights on investment principles, risk management, and long-term wealth creation. It covers foundational concepts that are relevant to the course's focus on valuation and financial analysis.
Provides a comprehensive guide to financial modeling, which is essential for estimating a firm's growth, cash flows, and earnings.
Classic guide to security analysis. It would be a valuable resource for students in this course, as it would provide them with a deep understanding of the process of analyzing a company's financial statements.
Provides a framework for developing value propositions for your products and services. It valuable resource for entrepreneurs who are looking to create products and services that customers want.
Provides a framework for understanding why large companies often fail to innovate. It valuable resource for entrepreneurs who are looking to avoid the pitfalls of incumbency.
Classic guide to value investing, which fundamental approach to valuing companies.
Provides an overview of private equity, which is another key player in the financing of startups.
Provides a practical guide to financial management for entrepreneurs. It valuable resource for entrepreneurs who are looking to make sound financial decisions.
Guide to angel investing. It would be a valuable resource for students in this course, as it would provide them with an overview of the angel investing industry and the process of investing in startups.
Guide to the venture capital cycle. It would be a valuable resource for students in this course, as it would provide them with an overview of the venture capital process from start to finish.
Provides a lifestyle design framework for creating a more fulfilling and balanced life. It valuable resource for entrepreneurs who are looking to escape the traditional 9-to-5 grind.
Provides insights into the challenges faced by established companies when innovating, which can be helpful for understanding the challenges faced by startups.
Provides a collection of essays on the challenges of building startups, which can be helpful for understanding the realities of starting a business.
Provides a guide to developing good strategy, which is essential for the success of any startup.
Provides a condensed guide to the essential concepts of business, which can be helpful for entrepreneurs who need a quick overview of business fundamentals.

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