DCF Valuation
Learn to follow best practices in generating a forecast model and Discounted Cash Flow (DCF) valuation of a business using ‘fundamental valuation’ techniques. DCF can be used on a wide variety of business and is used by equity research and institutional investors as well as parties valuing entire businesses such as corporate or ‘strategic’ buyers/ sellers, Private Equity (PE) funds and financial sponsors and advisory firms.
View video to get a brief overview of the course
What do you get on this course?
Objectives
- Forecast free cash flow to the enterprise
- Estimate an appropriate Weighted Average Cost of Capital (WACC) for the business you are valuing
- De-lever comparable companies betas and re-lever to the target capital structure of the business being valued
- Estimate a reasonal Terminal Value (TV) using either a multiple, or a perpetual growth assumption
- Discount free cash flows and TV to valuation date, incorporating the mid-year adjustment
- Translate the resulting EV to an equity value
- Sensitize you results in an Excel data-table
key Topics
Complete topics step by step or jump to any of the below at any time.
- Deriving share price
- Free cash flows
- Weighted average cost of capital
- Cost of debt
- Cost of Equity
- De-levering and re-levering WACC
- Terminal value
- Discounting & the mid-year convention
- EV to implied shared price
- Checking the analysis
3.5 hours of video content.
Estimated 7 hours to complete.
How to access your course
- Checkout and pay for the course(s).
- Your course(s) will be added to your DELTA account.
- You will then receive an email with joining instructions.
- You will have 12 months access from date of purchase.
Pre-requisites
This course is open to all. To maximize the benefit of this course we recommend an understanding of financial statements and Microsoft Excel.
Technical Requirements
You will need an Internet connected device to access the videos and download supporting resources. Supporting resources can be used offline, which require Microsoft Excel 2003 or later and a PDF reader.
Comprehensive Resources
You’ll be able to easily access all of the materials you need through our learning management system DELTA
- Bite-size trainer led HD videos detailing step by step techniques and best practices.
- Download the slides and files as used in the videos, which can be completed while watching or saved for later.
- Open forum for quick problem solving.
