Step by step guide to do a DCF valuation

Clear conceptual and practical illustration to do a fundamental valuation of a company based on DCF technique
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  • Lectures 31
  • Length 1.5 hours
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
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    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 3/2016 English

Course Description

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.

What are the requirements?

  • Students will be required to have a good understanding of the financial statements of a company i.e Income Statement and Balance sheet in particular. If you do not have any prior background in finance and still want to learn this course, we recommend that you undertake our course on "Basics of financial accounting" as well as "Financial performance analysis" already available on Udemy.

What am I going to get from this course?

  • Do a Discounted Cash flow valuation to arrive at the equity valuation of any company. This course is a step by step guide on doing a DCF valuation in an excel spreadsheet. We will look in great details on each of those steps.

What is the target audience?

  • This course is meant for current and prospective financial analysts in corporate, consulting and financial services sector. As analysts we are required to do valuation exercise on different companies on a daily basis. The course will help you especially if you are in equity research, Private Equity, Investment banking, Corporate Finance and Strategy roles.

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: Conceptual understanding of Discounted Cash Flow valuation
Introduction
Preview
01:41
01:59

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
03:05
What are cash flows?
Preview
04:56
For which time periods do we need to estimate cash flows?
01:44
What is discounting?
00:55
What is the discount rate - WACC?
01:32
How to apply discount rate to cash flows to estimate value?
02:19
What is terminal value?
01:13
Final calculations
00:45
Section 2: Practical illustration of Discounted Cash Flow valuation
What did we learn so far?
02:43
5 step process to carry out Discounted Cash Flow valuation
01:37
Article

Please download the excel template attached here.

Lets look at the data
04:54
Step 1a: Calculating EBIT
05:46
Step 1b: Calculating post tax operating profits
04:26
Step 1c: Calculating post tax operating cash profits
01:29
Step 1d: Calculating capex
05:52
Step 1e: Calculating FCFF
06:02
Step 2a: Calculating WACC
06:16
Concept of compounding
01:36
Concept of discounting
01:28
Step 2b: Calculating Present Value of FCFF
04:11
Step 3: Calculating Terminal Value
04:34
Step 4: Calculating Enterprise Value
00:58
Step 5: Calculating Equity value per share
01:41
Section 3: Sensitivity Analysis
How to do a sensitivity analysis on DCF valuation?
07:11
Section 4: So what did we learn in this course?
What did we learn?
01:13
Article

Please solve this exercise before moving to the next lecture.

Queries and contact us
00:12
Please provide us your feedback
Article

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Instructor Biography

Skillfin Learning, Learn from the experts in financial modeling and analytics

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.

Our courses are comprehensive to impart skills around financial modeling and analytics i.e. excel, financial analysis and valuation. All our courses are practical and illustrations based that gives an on the job like training to our students. 

We remain committed to help you in your professional learning experience and development. You have access to our expertise 24 x 7 on all the courses you subscribe to.

Our courses are listed below. Look forward to seeing you inside.

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