Discounted cash flow method means that we can find firm value by discounting future cash flows of a firm. That is, firm value is present value of cash flows a firm generates in the future. In order to understand the meaning of present value, we are going to discuss time value of money, first. That is, the value of $100 today is different from the value of $100 a year later. Then, what should be the present value of $100 that you are going to receive in 1 year? How about the value of $100 dollars that you are going to receive every year for next 10 years? How about forever? After taking this course, you are going to be able to find the present value of these types of cash flows in the future. Unlike most of finance courses, in this course, you are going to learn how to use excel to find present value of future cash flows. In addition to the present value, you are also going to learn how to find future value given investment; interest rate given investment and future cash flows, payments given interest rates, number of periods to wait given investment and interest rate, and so on. After learning the concept and how to find the time value of money, you are going to apply this to real world examples and company valuation. After taking this course, you will be ready to make an estimate of firm value by discounting its cash flows in the future.
About this Course
Skills you will gain
- 5 stars57.46%
- 4 stars26.66%
- 3 stars11.42%
- 2 stars2.22%
- 1 star2.22%
TOP REVIEWS FROM VALUATION FOR STARTUPS USING DISCOUNTED CASH FLOWS APPROACH
Exercises are good, but there are ambiguities in the questions such as the unit. Recommended in general
I was very nice. You can go step by step and at the end you have the tools for value a enterprise in the real world using DFC model
This course sets the foundation for valuation very well. Even a person with zero prior knowledge will be able to understand this.
Some questions in the quiz might be expressed in a more clear way. But overall interesting and helpful to refresh some university studies!
About the Valuation and Financial Analysis For Startups Specialization
Frequently Asked Questions
When will I have access to the lectures and assignments?
What will I get if I subscribe to this Specialization?
Is financial aid available?
More questions? Visit the Learner Help Center.