Course Content

Mastering Discounted Cash Flow Analysis with Excel

1. Introduction to Business Valuation

What You'll Learn About DCF and Business Valuation Why Valuing a Business Matters for Investors and Owners Overview of Business Valuation Methods

2. Understanding Discounted Cash Flow (DCF) Analysis

Introduction to the Discounted Cash Flow Valuation Method DCF Money Printing Machine Example DCF Formula Calculations

3. Cash Flow Forecasting and Discount Rate Fundamentals

How to Calculate Unlevered Free Cash Flow (UFCF)Understanding the Discount Rate in Valuation How to Calculate Cost of Debt Cost of Debt Calculation Example How to Calculate Cost of Equity (CAPM)How to Calculate Cost of Equity Using Build Up Method Cost of Equity Calculation Example

4. WACC, Terminal Value & Sensitivity Analysis

Weighted Average Cost of Capital (WACC) Calculation Terminal Value (TV) and Perpetuity Growth Rate (g)Terminal Value Calculation Example Sensitivity Analysis in DCF Valuation

5. Building a DCF Valuation Model in Excel

Company Overview and Valuation Objective Exploring the Excel-Based DCF Model Modeling the Income Statement Items Modeling the Balance Sheet Items Creating Clean Income Statement Output Creating Clean Balance Sheet Output Building the UFCF Model: From EBIT to Operating Cash Flow Accounting for CapEx, Assets & Reconciliation to Net Cash Flow Forecasting UFCF and Linking Cash Flow to the Balance Sheet Final DCF Calculation and Valuation Output Visualizing Results with Excel Charts Performing Sensitivity Analysis in Excel

6. Practical DCF Case Study – Company Valuation in Action

DCF Assignment Walkthrough: From Inputs to Enterprise Value

What You'll Learn About DCF and Business Valuation

Prerequisites

Excel for Beginners

Definition

Discounted Cash Flow (DCF) method estimates a company's value by projecting its future cash flows and adjusting them to today's value using a discount rate. It reflects not just expected earnings, but also the risk and timing of those earnings.

Before diving into formulas and spreadsheets, it's essential to understand why Discounted Cash Flow (DCF) is considered one of the most robust methods for business valuation. At its core, DCF is based on a simple idea: the value of money changes over time.

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