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DCF - Discounted Cash Flow for Beginners
Learn how to do DCF valuations on companies financial statements

What you will learn

With the help of practical application and examples you shall understand different valuation methods available to investors

Learn about DCF, where is it used, benefits of using DCF – comparability with other methods, projecting cash flows, determining levered and unlevered beta.

Calculating cost of equity, calculating after tax cost of debt, calculating WACC, calculating a terminal value using Gordon growth.

Discounting the cash flows at WACC, finding the per share intrinsic value, concluding the analysis, creating share price sensitivity tables

Description

One of the valuation methods Discounted Cash Flows (DCF) is used to determine the worth of investing. This training is dedicated to learning about this most commonly used DCF valuation techniques wherein you shall understand its techniques right from scratch on a financial model.
With the help of practical application and examples you shall understand different valuation methods available to investors. Learn about DCF, where is it used, benefits of using DCF – comparability with other methods, projecting cash flows, determining levered and unlevered beta, calculating cost of equity, calculating after tax cost of debt, calculating WACC, calculating a terminal value using Gordon growth as well as the multiples method, discounting the cash flows at WACC, finding the per share intrinsic value, concluding the analysis, creating share price sensitivity tables and constructing a football field valuation

By joining this training you would benefit by::


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  • Learning how to do DCF valuations on companies financial statements
  • Learning how to find the per share intrinsic value
  • DCF Valuation techniques.

Discounted Cash Flow model is a theoretical method of evaluating a stream of cash flow based on several assumptions related to cash flow projections, growth rate, and required rate estimations based on market conditions and risk involved, therefore as it is forward-looking, most of these inputs are approximations and can result in mistakes in evaluation.

English
language

Content

Introduction

Introduction Discounted Cash Flow

Absolute Valuation

Course Outline
Valuation Methodologies
Relative Valuation

DCF

Basic Concepts of DCF
Understand DCF Method
More on DCF Method
Using Concept of Terminal Value
Common Trade of DCF Value
Types of DCF
Important Accounting Equations

DCF Advantages

Advantages of DCF
DCF Versus Comps
Steps of DCF
More on DFC Steps
DCF Predicting the Cash Flows
DCF Predicting the Cash Flows Continues

Case Study

Starting with the Case Study
Predicting the Cash Flows
Case Study Explained
Predicting Terminal Values
Methods to Calculate Terminal Values
Case study Step 2 Explained
Case study Step 2 Explained Continues
Working on DCF Explain

Net Debt and Cost of Debt

Net Debt
Cost of Debt
More on Cost of Debt
Cost of Equity

Beta

Understand Beta
Beta Continues
Finalizing the case study
Creating a Sensitivity Table
Concluding the Analysis
Common Interview Questions