Valuation for Startups (Excel Template Provided)

DY Management Research Institute

(Director Ryu Dae-young, Ph.D. in Business Administration/Business Consultant (Finance))

• YouTube: www.youtube.com/@dy-4714

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This is Daeyoung Ryu, who runs the 'DY Management Research Institute' on YouTube and N Blog.

I would like to help those who are working in related fields based on my experience in the company and what I have studied in management. I will provide you with an approach that can help you in a very practical way, from cost, management, accounting, financial business plan, investment attraction, and overall management. If you would like to collaborate on a lecture I have posted or my area of expertise, please contact me by email!

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• Management/cost consulting, business review, financial business plan establishment, management simulation, financial projection for investment attraction.

• Excel practical training, data visualization using Excel, work efficiency using Excel. We will cut your work time in half.

• We welcome lectures/work requests/Q&As related to specialized fields and YouTube videos.

  
  

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• Hello, I am Daeyoung Ryu, the director of DY Management Research Institute.

  
  

  Let me give you a brief introduction to the corporate valuation lecture.

  
  

  
  

  
  

• For most startup companies, the ultimate goal is to grow the company and increase its corporate value. By growing the company, increasing sales and profits, and increasing final cash flow, the company value is increased.

This lecture explains how to calculate the corporate value using Excel based on management theory when it is conducted in this way. The Excel tool has already been created and we will explain how to utilize this Excel tool.

Of course, if you take the course, we will provide you with an Excel tool for free. If you don't have this Excel tool, it will probably take a lot of time. Since we have an Excel tool that we created and provide a video on how to use this Excel tool, you will be able to save a lot of time. This is an Excel that contains my financial and management know-how.

This Excel lecture (Excel template) is structured as follows.

1. Estimating the cost of equity capital

In management theory, the value of a company is the sum of future cash flows discounted to present value. Therefore, it is important to determine the cost of equity capital and the discount rate. We will explain the theoretical method of calculating the cost of equity capital.

2. 5-year financial statement projections:

Estimating the income statement, balance sheet, and cash flow statement

Future cash flows are usually estimated based on the company's five-year business plan, and after that, they are estimated somewhat roughly based on appropriate assumptions.

3. Three models for evaluating corporate value

- RIM (Risk Income) Model Valuation

- EVA (Economic Value Added) Model Valuation

- DCF (Discounted Cash Flow) Model Valuation

We will conduct corporate valuation using representative corporate valuation methods: RIM, EVA, and DCF models.

Valuation is the core of financial management. This task is difficult and complex. It requires a lot of financial knowledge and there are many areas where decisions need to be made. This Excel template and lecture will help you approach this difficult task a little more easily.

※ addition

1. Understanding business processes through accounting entries: Data on the process of creating financial statements from accounting entries

2. Estimation of capital ratio: Equity capital ratio calculation method, Weighted average capital cost calculation method

This concludes the explanation of the lecture.

If you understand just the part explained above, your startup will be able to calculate its own corporate value and utilize it in management.

Please refer to the figure below for details.