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Yonsei University

Valuation for Startups Using Discounted Cash Flows Approach

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.

Status: Estimation
Status: Finance
BeginnerCourse8 hours

Featured reviews

AS

4.0Reviewed Aug 3, 2020

please explain miniquiz questions. since it is difficult to understand by only one example.

DM

5.0Reviewed Jun 1, 2020

Very straightforward course with helpful template for evaluating simple cashflows.

CM

5.0Reviewed Apr 28, 2019

Amazing how easy the teacher explains financial concepts that helps you through the entire specialization and to successfully do valuations using discounted cash flows.

VD

5.0Reviewed Mar 8, 2021

Muy interesante, material de calidad y para auto aprender, encontre la zona del foro muy interesante para resolver dudas, lo recomendaria.

BM

5.0Reviewed Apr 25, 2020

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.

KB

4.0Reviewed May 10, 2020

This Course was a challenging one. this helps me to learn about various concepts and how to value stocks and bonds using dcf.

MS

5.0Reviewed Jun 3, 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.

AP

5.0Reviewed Mar 22, 2021

It is an excellent course, in which you can review and strengthen your knowledge. The methodology and the handling of the quizzes is excellent.

BL

4.0Reviewed Jan 1, 2021

Some of the test questions were confusing, will need better explanation in the video.

ZA

5.0Reviewed Apr 14, 2018

Worth it.Simple & easy to understandMinor Issues existed in the Final test which needed some clrification

MM

4.0Reviewed Nov 2, 2020

DCF in Week 4 is not described well which lead problem in understanding which caused a problem for Minicase Quiz completion

PM

5.0Reviewed Jul 9, 2020

Excelente, me encanto la metodologia y la persona que explica.

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