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
Learner Career Outcomes
Learner Career Outcomes
Yonsei University was established in 1885 and is the oldest private university in Korea.
- 5 stars
- 4 stars
- 3 stars
- 2 stars
- 1 star
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. Thank You
Very helpfull. I wanted to make a business plan of a real estate investment and this course taught be how to use the discounted cashflow method and I applied it to the business plan.
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
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.
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.