Valuation for Startups Using Discounted Cash Flows Approach (Coursera)

Valuation for Startups Using Discounted Cash Flows Approach (Coursera)
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Valuation for Startups Using Discounted Cash Flows Approach (Coursera)
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?

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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.

Course 1 of 5 in the Valuation and Financial Analysis For Startups Specialization.


Syllabus:


Week 1

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.


Week 2

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.


Week 3

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.


Week 4

Discounted Cash Flow (DCF) Approach (2)

You can forecast the firm's free cash flow and wrap up this course with review lecture.



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