About this course: 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.
Who is this class for: The target audience of this Specialization includes venture capitals, angel investors, and entrepreneurs, Particularly, entrepreneurs are wondering the value of their startups and how much ownership they need to give up to raise additional capital. It is same for angel investors. They are wondering how much ownership they need to ask in return for their investment. Venture capitals may know the value of startups better than entrepreneurs or angel investors but they need to communicate with startups how they value startups. This Specialization helps angel investors, entrepreneurs, and venture capitals understand and communicate the value of startups.
Taught by: Hyun Han Shin, Professor
School of Business
| Basic Info | Course 2 of 5 in the Valuation and Financial Analysis For Startups Specialization |
| Level | Beginner |
| Language | English, Subtitles: Spanish, Korean |
| How To Pass | Pass all graded assignments to complete the course. |
| User Ratings |
- Video: Welcome Video
- Video: 1.1 Valuation Based on Comparable Firms
- Reading: 1.1 Slide
- Video: 1.2 Valuation Based on Comparable Firms (1) PE Ratio
- Reading: 1.2 Slide
- Practice Quiz: Practice Question 1
- Video: 1.3 Valuation Based on Comparable Firms (2) PB Ratio, PS Ratio
- Reading: 1.3 Slide
- Practice Quiz: Practice Question 2
- Discussion Prompt: Comparison with Peers
- Video: 2.1 Pre-money valuation
- Reading: 2.1 Slide
- Reading: Excel Template
- Practice Quiz: Practice Question 1
- Video: 2.2 Post-money valuation
- Reading: 2.2 Slide
- Practice Quiz: Practice Question 2
- Video: 2.3 Rounds of financing (1)
- Reading: 2.3 Slide
- Practice Quiz: Practice Question 3
- Video: 2.4 Rounds of Financing (2)
- Reading: 2.4 Slide
- Practice Quiz: Practice Question 4
- Video: 3.1 Financial Statements (1)
- Reading: 3.1 Slide
- Practice Quiz: Practice Question 1
- Video: 3.2 Financial Statements (2)
- Reading: 3.2 Slide
- Video: 3.3 Cash Flow Calculation
- Reading: 3.3 Slide
- Reading: Excel Template
- Practice Quiz: Practice Question 2
- Video: 4.1 Cash Flow
- Reading: 4.1 Slide
- Video: 4.2 Cash Flow Calculation
- Reading: 4.2 Slide
- Practice Quiz: Practice Question
- Video: 4.3 Review
- Reading: 4.3 Slide
- Reading: Excel Template
- Discussion Prompt: Cash Flow Analysis
- Reading: Case Study Quiz: Ysom Inc.
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| Purchase Course | |
|---|---|
| Access to course materials | Available |
| Access to graded materials | Available |
| Receive a final grade | Available |
| Earn a shareable Course Certificate | Available |
The quizz and exercices have a lot of weird problems. Way of asking the question, approximation of the result, contradictory initial datas... It needs to be reviewed
Very clear overall at a pace I (non-financial savvy) can accept. But hope to solution to all questions in the future.
The course is simple and perfectly self contained. It is excellent as a primer on the topic or to refresh old knowledge. The examples are clear and so is the language. Of course it does not address in full the complexity and the ramifications of this approach.
This course is more advanced compared to the previous one - Valuation for Startups Using Discounted Cash Flow. There are a lot more theoretical concepts and examples that are covered in this course and I really enjoyed the lectures and the quizzes. 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. I am quite satisfied with this course and would recommend it to someone looking to earn the Specialization in " Valuation and Financial Analysis For Startups". Two thumbs up!