Intro to Corporate Finance; Valuation & Investment judgement

Learn how price is a fixed, momentary number while value reflects subjective benefits and synergy, guiding the rule to buy assets for which value exceeds price.

Explore three corporate valuation approaches—income, market, and cost—each starting from a different basis. Use DCF for intrinsic value, comparables for market value, and adjusted net assets as a floor.

Explore enterprise value as the present value of future free cash flow, mapped on the balance sheet to show operating and non-operating value versus creditor and shareholder value.

Explore the discounted cash flow method as the beating heart of finance, measuring enterprise value through forecasting free cash flow and discounting at the weighted average cost of capital.

Examine how debt's tax shield can raise a firm's value without changing operations, and learn to separate operating value from financing choices using NOPAT, FCF, and WACC.

Learn how net capital expenditure affects free cash flow by adding back depreciation and amortization and subtracting CAPEX to reveal the cash reality behind profits.

Analyze how changes in working capital (accounts receivable, inventory, and accounts payable) adjust free cash flow from NOPAT, depreciation, and CAPEX to reveal the true cash generation of a business.

Explore the discount rate and WACC to value a company using discounted cash flow, linking future free cash flows to enterprise value through time value of money.

Apply discounting to turn future cash flows into present value, using 1 million yen per year to show how waiting lowers value and how WACC informs the discount rate.

Master WACC by blending after tax cost of debt with cost of equity to reflect a company’s capital structure. Grasp tax shield, market risk premium, and beta for sound valuation.

Explore how the cost of equity reflects the risk premium investors require, and how CAPM uses the risk-free rate, market risk premium, beta, plus country risk and industry maturity.

Apply WACC concepts through two practice problems, evaluating debt and equity costs, tax shields, and CAPM-based equity in capital structure, while stressing the hurdle rate.

Compute terminal value with a growing perpetuity using the WACC minus growth rate, then discount back to today to reveal horizon value at year 5.

Execute discounted cash flow model for Company A to compute enterprise value from five years of free cash flow, using 5% WACC and a 2% perpetual rate for terminal value.

Build a profit and loss model to calculate nopat from ebit. Use blue inputs, black formulas, and absolute references to lock 5% growth, 60% cogs, 2% sg&a, and 30% tax.

Explore the end-of-period and mid-period cash flow conventions; a six-month timing shift alters present value and enterprise value, emphasizing dynamic, single-input dcf modeling.

Learn how enterprise value converts to shareholder value by subtracting net debt to reveal the value per share.

Examine the price book value ratio (PBR) and why the Tokyo Stock Exchange flags firms trading below 1.0, highlighting liquidation value, cost of capital, and growth potential.

Apply the net present value method by discounting future cash flows to present value and subtracting the initial investment to decide go/no-go based on timing and value.

Apply the internal rate of return (irr) to investment decisions by comparing irr with the hurdle rate, npv, and pv, to illustrate irr's role in measuring efficiency and value.