Valuation for Startups Using Discounted Cash Flows Approach

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Valuation for Startups Using Discounted Cash Flows Approach

This course is part of Valuation and Financial Analysis For Startups Specialization

Instructor: Hyun Han Shin

22,230 already enrolled

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4 modules

Gain insight into a topic and learn the fundamentals.

339 reviews

Beginner level

No prior experience required

Flexible schedule

8 hours to complete

Learn at your own pace

87%

Most learners liked this course

4 modules

Gain insight into a topic and learn the fundamentals.

339 reviews

Beginner level

No prior experience required

Flexible schedule

8 hours to complete

Learn at your own pace

87%

Most learners liked this course

Skills you'll gain

Tools you'll learn

Microsoft Excel

Details to know

Shareable certificate

Add to your LinkedIn profile

Assessments

12 assignments

Taught in English

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This course is part of the Valuation and Financial Analysis For Startups Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

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There are 4 modules in this course

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.

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.

What's included

6 videos10 readings4 assignments1 discussion prompt

6 videos Total 31 minutes

Welcome Video 1 minute
1.1 Future Value 9 minutes
1.2 Present Value 7 minutes
1.3 Present Value of Multiple Cash Flows 6 minutes
1.4 NPV of Multiple Cash Flows 4 minutes
1.5 Present Value of Annuity 4 minutes

10 readings Total 100 minutes

Instructions for beta test 10 minutes
Link to Course Evaluation Form 10 minutes
1.1 Slide 10 minutes
Excel Template 10 minutes
1.2 Slide 10 minutes
Quarterly Compounding 10 minutes
Continuous Compounding 10 minutes
1.3 Slide 10 minutes
1.4 Slide 10 minutes
1.5 Slide 10 minutes

4 assignments Total 24 minutes

Practice Question 1-1 4 minutes
Practice Question 1-2 4 minutes
Practice Question 1-3 2 minutes
Week 1 14 minutes

1 discussion prompt Total 10 minutes

Introduce yourself 10 minutes

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.

What's included

4 videos4 readings3 assignments1 discussion prompt

4 videos Total 20 minutes

2.1 Present Value of Perpetuity 6 minutes
2.2 PMT 6 minutes
2.3 Number of Periods 4 minutes
2.4 Rate 4 minutes

4 readings Total 40 minutes

2.1 Slide 10 minutes
2.2 Slide 10 minutes
2.3 Slide 10 minutes
2.4 Slide 10 minutes

3 assignments Total 24 minutes

Practice Question 2-1 6 minutes
Practice Question 2-2 4 minutes
Week 2 14 minutes

1 discussion prompt Total 20 minutes

Rules of Thumb 20 minutes

Using the method explained last two weeks, you will execute it in real world. In detail, you can calculate bond valuation and enterprise value.

What's included

3 videos4 readings3 assignments

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

What's included

2 videos3 readings2 assignments

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Instructor

Instructor ratings

(62 ratings)

Hyun Han Shin

Yonsei University

4 Courses 32,498 learners

Offered by

Yonsei University

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Reviewed on Jun 1, 2020

Very straightforward course with helpful template for evaluating simple cashflows.

Reviewed on 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.

Reviewed on Mar 8, 2021

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

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