DCF Valuation: Complete Course with Startup Valuation Case.

Name: DCF Valuation: Complete Course with Startup Valuation Case.
Rating: 4.3 (62 reviews)

Learn how to apply the DCF valuation model to company and startup valuation, with real-world business cases.

Created byFinancial Analysts

Last updated 8/2025

English

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What you'll learn

Principles and components of Discounted Cash Flow (DCF) valuation.
Learn to construct and analyze DCF models from scratch using Excel or other tools.
Develop skills to accurately project future cash flows and determine terminal value.
Master the process of discounting cash flows to estimate the intrinsic value of a company or asset.
Calculate DCF for a Startup

Course content

4 sections • 20 lectures • 1h 28m total length

Introduction1:56
Apply discounted free cash flow methods to value Duolingo as a practical case, using step-by-step DCF valuation, Excel models, and WACC calculations.
DCF Overview3:02
Learn how discounted free cash flow (DCF) estimates a business's value by discounting future cash flows to present value, enabling accurate, flexible, forward-looking valuations for startups and long-term decisions.
DCF Steps Overview3:12
Forecast five to ten years of revenue and expenses to derive free cash flows, discount with wacc, estimate terminal value, and compute enterprise and intrinsic equity value per share.
DCF Overview

Financial Statements for DCF6:36
Navigate income statements, balance sheets, and cash flow statements to extract revenue, ebit, net income, assets, liabilities, equity, and free cash flow for dcf valuation.
Revenue and profit projection for the next 5 years4:21
Forecast future cash flows by analyzing past revenue growth, free cash flow, and balance sheet trends, then project revenue using bottom-up or top-down approaches and derive EBIT and operating expenses.
Free Cash Flow 5 years projection2:12
Forecast free cash flow over five years using the formula net income plus depreciation and amortization minus capital expenditures and changes in working capital, illustrated with a five-year revenue projection.
WACC Calculation7:18
learn to compute the weighted average cost of capital (wacc) as the discount rate for dcf analysis, combining after-tax debt cost with the cost of equity within the capital structure.
Calculate Terminal Value5:39
Estimate terminal value beyond the forecast using the Gordon growth model or exit multiple approach, applying the terminal value formula with free cash flow, growth, and discount rate.
Financial statements in DCF valuation
WACC Calculation.

Calculate PV for FCF3:25
Calculate the present value of forecasted free cash flows by discounting future amounts at the discount rate, summing values, and incorporating terminal value using the weighted cost of capital.
Calculate Equity Value and Intrinsic Value4:29
Calculate equity value by subtracting net debt from enterprise value, then divide by outstanding shares to derive intrinsic value per share and compare to market price.
Sensitivity Analysis4:41
Explore sensitivity analysis in discounted cash flows by testing how wacc and terminal growth rate affect free cash flows, intrinsic value, and terminal value across scenarios.

Case Study Introduction2:38
Perform a practical discounted free cash flow valuation of Duolingo by building an Excel model step by step, using its freemium revenue mix and financial statements.
Financial Modeling in Excel3:29
Export five years of Duolingo financial statements to Excel and build a dcf model driven by revenue growth, user growth, conversion rates, price trends, and a five-year forecast.
Projecting Revenue and Profit for the Next 5 Years6:16
Forecast revenue and profit for five years using year-over-year growth rates, construct revenue projections, and analyze net income margins to inform DCF free cash flow assumptions.
Project FCF for the Next 5 Years4:32
Forecast free cash flow for the next five years using two methods: fixed growth from prior FCF and a revenue-based margin, using Yahoo Finance data.
Starting with Duolingo company's Valuation1:26
Forecast the cash flows and terminal value, apply a discount factor, and compute the present value of free cash flows using the weighted cost of capital.
Calculate WACC:10:21
Calculate the weighted average cost of capital (WACC) by weighting equity and debt, using a cost of equity of about 7.3%, zero cost of debt, and a 20% tax rate.
Calculate Terminal Value1:56
Compute the terminal value from the final year free cash flow using a perpetuity growth rate of 3%, with growth assumptions from Duolingo and USP, yielding about 18 billion.
Calculate the Enterprise Value4:30
Calculate the enterprise value by discounting free cash flow to present value using the weighted average cost of capital, then compute the terminal value and sum these values.
Calculate the Equity Value and Intrinsic Value6:37
Calculate equity value from enterprise value minus net debt, including cash and cash equivalents, then derive intrinsic value per share from market cap and shares outstanding; note sensitivity to growth.

Requirements

Recommended but not required: Basic Excel skills and financial statement knowledge.

Description

This course is designed to equip learners with the skills to perform Discounted Cash Flow (DCF) valuation, specifically tailored for startups and high-growth companies. Unlike traditional DCF models, valuing startups requires addressing unique challenges such as high uncertainty, limited historical data, and rapid growth potential. Through hands-on exercises, real-world case studies, and step-by-step guidance, you’ll learn how to build, analyze, and interpret DCF models for startups.

The course begins with the fundamentals of DCF valuation, covering core concepts like the time value of money, cash flow projections, and discount rates. You’ll then explore how to adapt these principles for startups, incorporating risk adjustments, stage-specific discount rates, and scenario analysis to account for the unique challenges of early-stage businesses. A key focus will be on forecasting cash flows for high-growth companies, where you’ll learn to project revenue, expenses, and free cash flows even with limited historical data.

One of the highlights of the course is a real-world case study where you’ll calculate the DCF valuation for Duolingo, a high-growth startup. You’ll analyze its financials, forecast future cash flows, and determine its intrinsic value, gaining practical experience in applying DCF to a real-life scenario. By the end of the course, you’ll be able to confidently build and interpret DCF models for startups, making informed decisions about valuation, fundraising, and investment opportunities.

This course is ideal for aspiring investors, venture capitalists, startup founders, and finance professionals who want to specialize in startup valuation. Whether you’re looking to value your own business, assess investment opportunities, or deepen your financial analysis skills, this course will provide you with the tools and knowledge to navigate the complex world of startup valuation. With a mix of theory, practical exercises, and real-world applications, you’ll gain the confidence to tackle valuation challenges in the dynamic startup ecosystem.

Who this course is for:

DCF valuation

DCF Valuation: Complete Course with Startup Valuation Case.

What you'll learn

Explore related topics

Course content

Introduction3 lectures • 8min

Building the discounted cash flow valuation.5 lectures • 26min

Core DCF Valuation Techniques3 lectures • 13min

Real-World Application: Duolingo DCF valuation9 lectures • 42min

Requirements

Description

Who this course is for: