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Hi friends, welcome to this course on guide to do a step by step Discounted Cash Flow valuation for a company.
What is the course about?
This course will give you a conceptual and practical illustration of a cash flow based approach to valuation of a company. You will learn a detailed step by step process to carry out a valuation exercise of a company for which you have been given forecasted financials for next 5 years in future.
Who should take this course?
This course is meant for all sorts of business and financial analysts who are required to do a valuation of companies for investment purposes. The course is a good one for early tenured analysts who want to learn about the technique in a practical illustration as well for tenured professionals who want to refresh the understanding of how DCF valuation approach works.
What do you need to know before signing up?
As you can understand that this is a specialized topic for which there needs to some understanding of the financial statements of a company especially income statement and balance sheet. What will also help if the students are already investing in stock markets or want to know what drives the price of a company trading in stock market.
Why take this course from us?
We are sure there are many such courses out there, however we feel that this course is different from others-
1) It gives us a detailed understanding of what is the discounted cash flow valuation technique from a conceptual point of view.
2) You get a step by step guide on doing a Discounted cash flow for any company. There is a standardized template that can help you to apply in your real life situations.
3) We have decades of experience in doing this for our large clients on a daily basis. So you benefit a lot from our valuable experience and it will show in the quality of the content that you will have access to.
4) We will be with you even after the course. Our expert faculty team is available to you 24x7 to help you solve any queries you may have around DCF valuation.
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Certificate of completion.
|Section 1: Conceptual understanding of Discounted Cash Flow valuation|
In this lecture, we ll understand the difference between price of a stock and the value of a stock.
What does DCF help to estimate?Preview
What are cash flows?Preview
For which time periods do we need to estimate cash flows?
What is discounting?
What is the discount rate - WACC?
How to apply discount rate to cash flows to estimate value?
What is terminal value?
|Section 2: Practical illustration of Discounted Cash Flow valuation|
What did we learn so far?
5 step process to carry out Discounted Cash Flow valuation
Please download the excel template attached here.
Lets look at the data
Step 1a: Calculating EBIT
Step 1b: Calculating post tax operating profits
Step 1c: Calculating post tax operating cash profits
Step 1d: Calculating capex
Step 1e: Calculating FCFF
Step 2a: Calculating WACC
Concept of compounding
Concept of discounting
Step 2b: Calculating Present Value of FCFF
Step 3: Calculating Terminal Value
Step 4: Calculating Enterprise Value
Step 5: Calculating Equity value per share
|Section 3: Sensitivity Analysis|
How to do a sensitivity analysis on DCF valuation?
|Section 4: So what did we learn in this course?|
What did we learn?
Please solve this exercise before moving to the next lecture.
Queries and contact us
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Hey there, welcome to our online courses.
Skillfin Learning is a group of corporate finance and business analytics professionals who have extensive experience and world class expertise in practical financial modeling applications in real world. We have been associated with large consulting and financial services organizations and understand the content requirement from analysts/professionals who can excel in this field. Our aim is to spread the learning in financial modeling and business analysis skills to whoever is keen to learn.
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