Valuation for Startups Using Discounted Cash Flows Approach
- 4.3
Course Summary
Learn how to use discounted cash flow analysis to make investment decisions in this course. Discover how to calculate the present value of future cash flows and determine the intrinsic value of a company.Key Learning Points
- Understand the principles of discounted cash flow analysis
- Learn how to calculate the present value of future cash flows
- Explore how to determine the intrinsic value of a company
Related Topics for further study
Learning Outcomes
- Ability to perform discounted cash flow analysis
- Understanding of present value and intrinsic value
- Proficiency in financial modeling
Prerequisites or good to have knowledge before taking this course
- Basic knowledge of finance
- Familiarity with Microsoft Excel
Course Difficulty Level
IntermediateCourse Format
- Self-paced
- Online
Similar Courses
- Business and Financial Modeling Specialization
- Valuation and Financial Analysis for Startups
Related Education Paths
- Financial Modeling and Valuation Analyst (FMVA) Certification
- Chartered Financial Analyst (CFA) Certification
Notable People in This Field
- Aswath Damodaran
- Warren Buffett
Related Books
Description
Discounted cash flow method means that we can find firm value by discounting future cash flows of a firm. That is, firm value is present value of cash flows a firm generates in the future. In order to understand the meaning of present value, we are going to discuss time value of money, first. That is, the value of $100 today is different from the value of $100 a year later. Then, what should be the present value of $100 that you are going to receive in 1 year? How about the value of $100 dollars that you are going to receive every year for next 10 years? How about forever? After taking this course, you are going to be able to find the present value of these types of cash flows in the future. Unlike most of finance courses, in this course, you are going to learn how to use excel to find present value of future cash flows. In addition to the present value, you are also going to learn how to find future value given investment; interest rate given investment and future cash flows, payments given interest rates, number of periods to wait given investment and interest rate, and so on. After learning the concept and how to find the time value of money, you are going to apply this to real world examples and company valuation. After taking this course, you will be ready to make an estimate of firm value by discounting its cash flows in the future.
Outline
- Time Value of Money (1)
- Welcome Video
- 1.1 Future Value
- 1.2 Present Value
- 1.3 Present Value of Multiple Cash Flows
- 1.4 NPV of Multiple Cash Flows
- 1.5 Present Value of Annuity
- Instructions for beta test
- Link to Course Evaluation Form
- 1.1 Slide
- Excel Template
- 1.2 Slide
- Quarterly Compounding
- Continuous Compounding
- 1.3 Slide
- 1.4 Slide
- 1.5 Slide
- Practice Question 1-1
- Practice Question 1-2
- Practice Question 1-3
- Week 1
- Time Value of Money (2)
- 2.1 Present Value of Perpetuity
- 2.2 PMT
- 2.3 Number of Periods
- 2.4 Rate
- 2.1 Slide
- 2.2 Slide
- 2.3 Slide
- 2.4 Slide
- Practice Question 2-1
- Practice Question 2-2
- Week 2
- Discounted Cash Flow (DCF) Approach (1)
- 3.1 Bond Valuation
- 3.2 Yield to Maturity
- 3.3 Enterprise Value
- 3.1 Slide
- 3.2 Slide
- 3.3 Slide
- Excel Template
- Practice Question 3-1
- Practice Question 3-2
- Week 3
- Discounted Cash Flow (DCF) Approach (2)
- 4.1 Stock Price
- 4.2 Review
- 4.1 Slide
- 4.2 Slide
- Excel Template
- Final Quiz
- Minicase Quiz
Summary of User Reviews
Key Aspect Users Liked About This Course
Many users appreciated the practical examples and case studies that the course provided, which helped them understand how to apply the concepts of discounted cash flow in real-life situations.Pros from User Reviews
- Comprehensive coverage of the topic
- Practical applications
- Engaging teaching style
- Clear explanations of complex concepts
- Useful resources and tools provided
Cons from User Reviews
- Some users found the course content to be too basic
- Lack of interaction with instructors and other students
- No hands-on exercises or projects
- Limited feedback on assignments
- High time commitment required