Build a DCF Valuation Model

Learn how to build a "Wall Street quality" DCF valuation model. Includes a complete DCF model in Excel.
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Instructed by Wall Street Prep Business / Finance
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  • Lectures 44
  • Length 5.5 hours
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
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    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 10/2014 English

Course Description

DCF analysis is both academically respected and widely used on Wall Street as a primary method of valuation. Many finance interview questions specifically test a candidate's understanding of the DCF. The step-by-step modeling course uses a real case study approach and is designed to mimic the experience of an financial analyst.

This course builds on Wall Street Prep's financial statement modeling course to teach trainees how to build a working discounted cash flow (DCF) model in Excel from scratch.

Along the way, you will learn how to estimate the weighted average cost of capital (WACC) in the real world, and build several commonly used approaches to calculating terminal value. Finally, we will use data tables to analyze a broad range of scenarios given different assumptions.

What are the requirements?

  • The program assumes an introductory knowledge of accounting and corporate finance, as well as proficiency in Excel.

What am I going to get from this course?

  • At course completion, you will have developed a comprehensive "Wall Street quality" DCF model from scratch.

What is the target audience?

  • Investment banking professionals and students seeking a lucrative finance career.

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: DCF Modeling Overview
A Note on Course Materials
Preview
Article
DCF Modeling Introduction
Preview
04:38
Enterprise Value vs. Equity Value
Preview
06:56
Book Value vs. Market Value
02:51
Cash Flow vs. Relative Valuation
01:46
Section 2: DCF Mechanics
DCF Overview
09:17
The 2 Stage DCF Approach
06:29
DCF vs. Comps in the Real World, Part 1
09:10
DCF vs. Comps in the Real World, Part 2
03:18
Unlevered vs. Levered DCF Approach
12:10
Unlevered vs. Levered Concept Check
02:46
DCF Implementation
06:17
Section 3: DCF Modeling
Building a DCF from a fully integrated Financial Statement Model
04:32
Modeling Unlevered Free Cash Flows, Part 1
08:10
Modeling Unlevered Free Cash Flows, Part 2
07:01
Modeling the Terminal Value (TV) using the Perpetuity Approach
07:47
Exit Multiple Concepts
04:24
Modeling the TV using Exit Multiples
05:15
Understanding Net Debt
11:29
Modeling Net Debt
07:13
Company Specific Adjustments: Modeling Apple's Trapped Cash
07:56
Section 4: Shares Outstanding
Modeling Dilutive Securities
11:00
RSUs and Model Review
08:09
Shares Outstanding Overview
08:40
Shares Outstanding - Options
07:02
Shares Outstanding - Split & Dual Classes
03:46
Shares Outstanding - Convertible Preferred Stock
11:27
Shares Outstanding - Convertible Exercise
11:12
Shares Outstanding - Restricted Stock
02:48
Section 5: Weighted Average Cost of Capital
WACC Concepts, Part 1
12:14
WACC Concepts, Part 2
05:53
WACC Concepts, Part 3
05:13
WACC Concepts, Part 4
06:49
Modeling WACC
15:39
Section 6: DCF Model Finishing Touches
Modeling an Implied Perpetuity Growth Rate
06:09
DCF Sensitivity Analysis
13:31
Constructing a "Football Field" Valuation Chart
12:19
LTM Summary Calculations
03:50
Section 7: DCF Bells & Whistles
Midyear Adjustments in the DCF
10:10
Normalizing Terminal Year Free Cash Flows
05:44
Modeling Normalized Terminal Year Free Cash Flows
05:07
Industry Beta Concepts
12:49
Industry Beta Exercise
03:32
Industry Beta Modeling
06:54

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Instructor Biography

Wall Street Prep, The global leaders in financial training

Wall Street Prep was founded in 2003 by a group of JP Morgan investment bankers with a simple goal: To make the “investment banking skill-set” available to anyone who wants to learn it. Each year, our innovative courses are used by over 5,000 professionals and students. Over 150 investment banks, private equity firms, and investment funds use Wall Street Prep to train new and experienced analysts and associates. In addition, over 50 business schools, including Wharton, Oxford, INSEAD, LSE, Kellogg, Booth, MIT, and Cornell use Wall Street Prep to better prepare their students for careers in finance.

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