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Finance & Accounting Financial Modeling & Analysis Company Valuation

Build a DCF Valuation Model

Learn how to build a "Wall Street quality" DCF valuation model. Includes a complete DCF model in Excel.
Rating: 4.1 out of 54.1 (399 ratings)
2,535 students
Created by Wall Street Prep
Last updated 9/2014
English
English [Auto]
30-Day Money-Back Guarantee

What you'll learn

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

Requirements

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

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.

Who this course is for:

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

Course content

7 sections • 44 lectures • 5h 20m total length

  • Preview00:41
  • Preview04:38
  • Preview06:56
  • Book Value vs. Market Value
    02:51
  • Cash Flow vs. Relative Valuation
    01:46

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

Instructor

Wall Street Prep
The global leaders in financial training
Wall Street  Prep
  • 4.6 Instructor Rating
  • 1,206 Reviews
  • 7,708 Students
  • 6 Courses

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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