Valuation for Startups (Excel Template Provided)

DY Management Research Institute

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

• YouTube : www.youtube.com/@dy-4714

• N Blog : https://blog.naver.com/udae025

• Email: daeyoung.lyu@gmail.com

I am Ryu Dae-young, who operates 'DY Management Research Institute' on YouTube and Naver Blog.

Based on my company experience and business administration studies, I want to help those working in related fields. I provide a very practical approach that can immediately help with cost accounting, management, accounting, finance, business planning, investment attraction, and overall business management. If you want to collaborate on the courses I've uploaded or in my areas of expertise, please contact me via email!

※ Area of Expertise:

• Management/Cost Consulting, Business Feasibility Review, Financial Business Plan Development, Management Simulation, Financial Projection Development for Investment Attraction.

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

• I welcome lecture requests, work requests, and Q&A related to specialized fields and YouTube videos.

  
  

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• Hello, I am Director Ryu Dae-young, who operates DY Management Research Institute.

  
  

  I'll provide a brief introduction to the corporate valuation course.

  
  

  
  

  
  

• Most startup companies will have the ultimate goal of growing the company to increase corporate value. The goal is to grow the company to increase revenue and profits, ultimately enhancing cash generation to boost corporate value.

This course explains how to calculate enterprise value using Excel from a business management theory perspective when the course proceeds in this manner. An Excel tool has already been created, and we will explain how to utilize this Excel tool.

Of course, when you take the course, we provide the Excel tool for free. Without this Excel tool, it would probably take a considerable amount of time. Since we have a ready-made Excel tool and provide videos on how to use this Excel tool, you'll be able to save a significant amount of time. This is an Excel file that contains my financial and management know-how.

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

1. Estimating Cost of Equity

In management theory, corporate value is the sum of future cash flows discounted to present value. Therefore, it is important to determine the cost of equity and the discount rate. I will explain the theoretical methods for calculating the cost of equity.

2. 5-Year Financial Statement Projection:

Estimating Income Statement, Balance Sheet, and Cash Flow Statement

Typically, future cash flows are estimated based on a company's 5-year business plan, and beyond that period, they are estimated somewhat roughly using appropriate assumptions.

3. Three Models for Corporate Valuation

- RIM (Residual Income) Model Valuation

- EVA (Economic Value Added) Model Valuation

- DCF (Discounted Cash Flow) Model Valuation

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

Valuation is the core of financial management. That's how difficult and complex this task is. It requires extensive financial knowledge and involves many decision-making aspects. With this Excel template and lecture, you will be able to approach this challenging task a bit more easily.

※ Additional

1. Understanding Business Processes Through Accounting Entries: Materials on the process of creating financial statements from accounting entries

2. Capital Ratio Estimation: Equity ratio calculation methods, weighted average cost of capital calculation methods

This concludes the explanation of the lecture.

If you understand only the parts explained above, startups will be able to calculate their own corporate value and utilize it in their management.

Please refer to the figure below for detailed information.