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
Learner Career Outcomes
50%
44%
14%
Skills you will gain
Learner Career Outcomes
50%
44%
14%
100% online
Course 1 of 5 in the
Flexible deadlines
Beginner Level
Approx. 12 hours to complete
English
Offered by
Yonsei University
Yonsei University was established in 1885 and is the oldest private university in Korea.
Syllabus - What you will learn from this course
Time 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.
Time 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.
Discounted 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.
Discounted Cash Flow (DCF) Approach (2)
You can forecast the firm's free cash flow and wrap up this course with review lecture.
Reviews
4.3
TOP REVIEWS FROM VALUATION FOR STARTUPS USING DISCOUNTED CASH FLOWS APPROACH
This course has helped me in Understanding new Concepts which will be very helpful in my future Carrier. I will be thankful to Coursera to give me this great opportunity for learning.\n\nThank You
Amazing how easy the teacher explains financial concepts that helps you through the entire specialization and to successfully do valuations using discounted cash flows.
Loved the course! The quizzes and cases really test your knowledge and make sure you understood the concepts and not just theoretically but practically
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?
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.
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