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Company Valuation using a Monte Carlo Simulation
Rating: 4.0 out of 5(63 ratings)
330 students

Company Valuation using a Monte Carlo Simulation

Implementation in an example Excel file
Created byMarcel Illgen
Last updated 2/2021
English

What you'll learn

  • Usage of the Monte Carlo Simulation in Microsoft Excel
  • Company Valuation with Discounted Cashflows
  • Implementing a way to reflect different possible cases in your company valuation
  • Understanding the effect of the different variables on the calculated company value
  • Creation of Monte Carlo Simulations without buying expensive Excel add-ins

Course content

4 sections • 15 lectures • 3h 30m total length

  • Presentation3:21
  • The Monte Carlo Simulation in Theory3:07

    In this lecture you will learn :
    - What is a Monte Carlo Simulation

    - We will have a look at a very easy example

  • Steps to a successful company valuation3:28

    In this lecture you will learn:

    - Which financial indicators you need for a discounted Cashflow Valuation

    - How to calculate the Free Cashflow to the firm (which is the basis of the discounted Cashflow Valuation)

    - What is discounting and why do we do it?

    - Formula for discounting future Cashflows

  • Presenting the Final Result2:37

    In this lecture you will learn:

    - How the final result of the Online Course looks like

    - What the different Excel Sheets are used for

Requirements

  • Interest for financial and statistical analysis
  • Microsoft Excel available
  • Knowledge about financial statements is a plus

Description

In my Online Course we will create together an Excel File that uses the Monte Carlo Simulation for various variables necessary in a company valuation. I explain the steps to value a firm with the discounted cashflow method and we will complete an example valuation on screen to deepen the understanding of various Excel formulas and financial modeling.

At the End you will have an example Excel File to quickly value any firm you want by taking into account the uncertainty of future values.

You will have the knowledge to adapt the Excel File for your own needs, to extend it if you want to include more variables or to increase the accuracy of your valuation.

In addition you will be able to perform Monte Carlo simulations with different probability distributions in Excel for any topic.

Who this course is for:

  • students, that wish to learn about Monte Carlo Simulations
  • financial professionals, that want to detail their valuations
  • financial market interested people who would like to understand how a company valuation is done

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