About 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.
Who is this class for: The target audience of this Specialization includes venture capitals, angel investors, and entrepreneurs, Particularly, entrepreneurs are wondering the value of their startups and how much ownership they need to give up to raise additional capital. It is same for angel investors. They are wondering how much ownership they need to ask in return for their investment. Venture capitals may know the value of startups better than entrepreneurs or angel investors but they need to communicate with startups how they value startups. This Specialization helps angel investors, entrepreneurs, and venture capitals understand and communicate the value of startups.
Taught by: Hyun Han Shin, Professor
School of Business
| Basic Info | Course 1 of 5 in the Valuation and Financial Analysis For Startups Specialization |
| Level | Beginner |
| Language | English, Subtitles: Korean |
| How To Pass | Pass all graded assignments to complete the course. |
| User Ratings |
- Reading: Instructions for beta test
- Reading: Link to Course Evaluation Form
- Video: Welcome Video
- Video: 1.1 Future Value
- Reading: 1.1 Slide
- Video: 1.2 Present Value
- Reading: 1.2 Slide
- Reading: Quarterly Compounding
- Reading: Continuous Compounding
- Practice Quiz: Practice Question 1-1
- Video: 1.3 Present Value of Multiple Cash Flows
- Reading: 1.3 Slide
- Video: 1.4 NPV of Multiple Cash Flows
- Reading: 1.4 Slide
- Practice Quiz: Practice Question 1-2
- Video: 1.5 Present Value of Annuity
- Reading: 1.5 Slide
- Practice Quiz: Practice Question 1-3
- Reading: Excel Template
- Discussion Prompt: Introduce yourself
- Video: 2.1 Present Value of Perpetuity
- Reading: 2.1 Slide
- Video: 2.2 PMT
- Reading: 2.2 Slide
- Practice Quiz: Practice Question 2-1
- Video: 2.3 Number of Periods
- Reading: 2.3 Slide
- Video: 2.4 Rate
- Reading: 2.4 Slide
- Practice Quiz: Practice Question 2-2
- Discussion Prompt: Rules of Thumb
- Video: 3.1 Bond Valuation
- Reading: 3.1 Slide
- Video: 3.2 Yield to Maturity
- Reading: 3.2 Slide
- Practice Quiz: Practice Question 3-1
- Video: 3.3 Enterprise Value
- Reading: 3.3 Slide
- Reading: Excel Template
- Practice Quiz: Practice Question 3-2
- Video: 4.1 Stock Price
- Reading: 4.1 Slide
- Video: 4.2 Review
- Reading: 4.2 Slide
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|---|---|---|
| Access to course materials | Available | Available |
| Access to graded materials | Not available | Available |
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To the point, well-explained, perfectly building up to reveal in few hrs how to compute Enterprise value....Just what I was looking for.
Nice learnings, horrible experience with the exercises.
This Course is very interesting and very practical. I saw the reality of theories in the Mini Case where PV of Total FCF is equal to Enterprise Value in an all equity firm...
I have been challenged, i Have learned new things and i will made a difference
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JW
This course is a general overview of PV and FV, along with some more advanced topics. The instructor is easy to understand and makes sure to give real world examples to help understand the complex ideas. However, there were several questions on the exams that needed further explanation from the instructor to understand or even answer. I had to google quite a few terms or ideas since the course doesn't go very deep on some topics.