Valuation for Startups Using Discounted Cash Flows Approach (Coursera)

Valuation for Startups Using Discounted Cash Flows Approach Online Coursera Course Overview

The discounted cash flow method means that we can find firm value by discounting the future cash flows of a firm. That is, firm value is the present value of cash flows a firm generates in the future. To understand the meaning of present value, we will first discuss the time value of money. That is, the value of $100 today differs from that of $100 a year later. Then, what should be the present value of $100 that you will receive in 1 year? How about the value of 100 dollars that you will receive every year for the next 10 years? How about forever?

After taking this course, you can find the present value of these cash flows in the future. Unlike most finance courses, this course will teach you how to use Excel to find the present value of future cash flows. In addition to the present value, you will also 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 will apply this to real-world examples and company valuation. After taking this course, you will be ready to estimate firm value by discounting its cash flows in the future.

Valuation for Startups Using Discounted Cash Flows Approach MOOC Course Syllabus

Week 1 – Time Value of Money

Investing money is essential 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 and present values. After this module, you can solve challenging examples in Excel.

Week 2 – Time Value of Money

In this module, you will focus on estimating the number of periods, (annual) payments, and interest rates with Excel. Furthermore, you can predict the value of a stream of cash flows. After this module, you can solve challenging examples in Excel.

Week 3 – Discounted Cash Flow (DCF) Approach

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

Week 4 – Discounted Cash Flow (DCF) Approach

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

Course Instructor

Valuation for Startups Using Discounted Cash Flows Approach Coursera course is taught by Hyun Han Shin.