Discounted Cash Flow (DCF) Valuation Modeling

Discounted cash flow (DCF) analysis is one of the most widely used and respected valuation methods in finance, making it an essential skill for professionals working in investing, corporate finance, and business strategy. Understanding not just what a DCF model is, but how and why it works, is critical for establishing an accurate sense of a company’s value. In this course, explore the full DCF process, starting with the core principles that underpin DCF valuation, then moving on to building a clean, compact model using industry-standard practices. Along the way, learn how sensitivity analysis can be used to evaluate how changes in assumptions impact valuation results, helping you interpret DCF outputs with confidence. This course is an ideal fit for anyone working in valuation, including investment banking, equity research, private equity, and corporate development.

Learning objectives
Explain the core principles behind DCF valuation, including cash-flow forecasting, discounting, and enterprise value.
Differentiate between key valuation concepts—such as discrete cash flow periods, terminal value, and discount rates—and how they interact in a DCF framework.
Construct a compact DCF model using industry-standard modeling practices.
Evaluate how changes in key assumptions impact valuation results through sensitivity analysis.
Interpret the final DCF outputs to form a reasoned view of a company’s value.