This course is part of the Valuation and Financial Analysis For Startups Specialization
Valuation for Startups Using Multiple Approach
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About this Course
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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.
Syllabus - What you will learn from this course
1
Section
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.
4 videos (Total 14 min), 3 readings, 3 quizzes
4 videos
1.1 Valuation Based on Comparable Firms3m
1.2 Valuation Based on Comparable Firms (1) PE Ratio4m
1.3 Valuation Based on Comparable Firms (2) PB Ratio, PS Ratio4m
3 readings
1.1 Slide10m
1.2 Slide10m
1.3 Slide10m
3 practice exercises
Practice Question 112m
Practice Question 212m
Week 130m
2
Section
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.
4 videos (Total 19 min), 5 readings, 5 quizzes
4 videos
2.2 Post-money valuation3m
2.3 Rounds of financing (1)7m
2.4 Rounds of Financing (2)4m
5 readings
2.1 Slide10m
Excel Template10m
2.2 Slide10m
2.3 Slide10m
2.4 Slide10m
5 practice exercises
Practice Question 112m
Practice Question 29m
Practice Question 324m
Practice Question 418m
Week 254m
3
Section
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.
3 videos (Total 21 min), 4 readings, 3 quizzes
4 readings
3.1 Slide10m
3.2 Slide10m
3.3 Slide10m
Excel Template10m
3 practice exercises
Practice Question 118m
Practice Question 215m
Week 327m
4
Section
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.
3 videos (Total 22 min), 4 readings, 3 quizzes
4 readings
4.1 Slide10m
4.2 Slide10m
4.3 Slide10m
Excel Template10m
3 practice exercises
Practice Question9m
Week 430m
Final Quiz6m
Instructor
Hyun Han Shin
ProfessorSchool of Business
About Yonsei University
Yonsei University was established in 1885 and is the oldest private university in Korea.
Yonsei’s main campus is situated minutes away from the economic, political, and cultural centers of Seoul’s metropolitan downtown. Yonsei has 3,500 eminent faculty members who are conducting cutting-edge research across all academic disciplines. There are 18 graduate schools, 22 colleges and 133 subsidiary institutions hosting a selective pool of students from around the world.
Yonsei is proud of its history and reputation as a leading institution of higher education and research in Asia.
About the Valuation and Financial Analysis For Startups Specialization
The Startup Valuation and Financial Analysis Specialization teaches two of the most often used methods to find the value of a startup. You’ll learn how to find the value of founder’s ownership before and after additional funding, how to read financial statements and make pro-forma statements, and how to determine the financial health and status of a startup and estimate future earnings and value. You’ll then use various investment criteria, such as Net Present Value (NPV) and Individual Rate of Return (IRR), to make a decision about whether and where to invest your money.
Specific topics include: the time value of money, discounted cash flows method, multiple method, financial statements analysis, free cash flows, capital budgeting decision rules and current trends. The Capstone Project will find the value of startups using the methods taught in the course.
Frequently Asked Questions
When will I have access to the lectures and assignments?
Once you enroll for a Certificate, you’ll have access to all videos, quizzes, and programming assignments (if applicable). Peer review assignments can only be submitted and reviewed once your session has begun. If you choose to explore the course without purchasing, you may not be able to access certain assignments.
What will I get if I subscribe to this Specialization?
When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.
What is the refund policy?
Is financial aid available?
More questions? Visit the Learner Help Center.
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