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.
This course is part of the Valuation and Financial Analysis For Startups Specialization
Valuation for Startups Using Discounted Cash Flows Approach
Offered By
About this Course
4.3
108 ratings
Skills you will gain
Discounted Cash FlowEnterprise ValueBond ValuationPresent Value
Syllabus - What you will learn from this course
Week
1Time Value of Money (1)
Investing money is important decision because a dollar today is worth more than a dollar in the future. In this module, you will look at several methods for calculating future value as well as present value. After this module, you can solve challenging examples with excel.
6 videos (Total 31 min), 10 readings, 4 quizzes
6 videos
1.1 Future Value9m
1.2 Present Value6m
1.3 Present Value of Multiple Cash Flows5m
1.4 NPV of Multiple Cash Flows4m
1.5 Present Value of Annuity3m
10 readings
Instructions for beta test10m
Link to Course Evaluation Form10m
1.1 Slide10m
1.2 Slide10m
Quarterly Compounding10m
Continuous Compounding10m
1.3 Slide10m
1.4 Slide10m
1.5 Slide10m
Excel Template10m
4 practice exercises
Practice Question 1-14m
Practice Question 1-24m
Practice Question 1-32m
Week 114m
Week
2Time Value of Money (2)
In this module, you will focus on how to estimate number of periods, (annual) payment, and interest rate with excel. Furthermore, you will be able to predict the value a stream of cash flows. After this module, you can solve challenging examples with excel.
4 videos (Total 20 min), 4 readings, 3 quizzes
4 readings
2.1 Slide10m
2.2 Slide10m
2.3 Slide10m
2.4 Slide10m
3 practice exercises
Practice Question 2-16m
Practice Question 2-24m
Week 214m
Week
3Discounted Cash Flow (DCF) Approach (1)
Using the method explained last two weeks, you will execute it in real world. In detail, you can calculate bond valuation and enterprise value.
3 videos (Total 26 min), 4 readings, 3 quizzes
4 readings
3.1 Slide10m
3.2 Slide10m
3.3 Slide10m
Excel Template10m
3 practice exercises
Practice Question 3-16m
Practice Question 3-24m
Week 312m
Week
4Discounted Cash Flow (DCF) Approach (2)
You can forecast the firm's free cash flow and wrap up this course with review lecture.
2 videos (Total 15 min), 3 readings, 2 quizzes
3 readings
4.1 Slide10m
4.2 Slide10m
Excel Template10m
2 practice exercises
Final Quiz35m
Minicase Quizm
4.3
83%
Top Reviews
By DK•Nov 10th 2018
Loved the course! The quizzes and cases really test your knowledge and make sure you understood the concepts and not just theoretically but practically
By MS•Jun 4th 2017
To the point, well-explained, perfectly building up to reveal in few hrs how to compute Enterprise value....Just what I was looking for.
Instructor
Hyun Han Shin
ProfessorSchool of Business
About Yonsei University
Yonsei University was established in 1885 and is the oldest private university in Korea.
Yonsei’s main campus is situated minutes away from the economic, political, and cultural centers of Seoul’s metropolitan downtown. Yonsei has 3,500 eminent faculty members who are conducting cutting-edge research across all academic disciplines. There are 18 graduate schools, 22 colleges and 133 subsidiary institutions hosting a selective pool of students from around the world.
Yonsei is proud of its history and reputation as a leading institution of higher education and research in Asia.
About the Valuation and Financial Analysis For Startups Specialization
The Startup Valuation and Financial Analysis Specialization teaches two of the most often used methods to find the value of a startup. You’ll learn how to find the value of founder’s ownership before and after additional funding, how to read financial statements and make pro-forma statements, and how to determine the financial health and status of a startup and estimate future earnings and value. You’ll then use various investment criteria, such as Net Present Value (NPV) and Individual Rate of Return (IRR), to make a decision about whether and where to invest your money.
Specific topics include: the time value of money, discounted cash flows method, multiple method, financial statements analysis, free cash flows, capital budgeting decision rules and current trends. The Capstone Project will find the value of startups using the methods taught in the course.
Frequently Asked Questions
When will I have access to the lectures and assignments?
Once you enroll for a Certificate, you’ll have access to all videos, quizzes, and programming assignments (if applicable). Peer review assignments can only be submitted and reviewed once your session has begun. If you choose to explore the course without purchasing, you may not be able to access certain assignments.
What will I get if I subscribe to this Specialization?
When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.
What is the refund policy?
Is financial aid available?
More questions? Visit the Learner Help Center.
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