Discounted Cashflow Models for Business Leaders

Course details

In this course, finance expert Jason Schenker explores essential financial concepts and techniques for business decision-making with discounted cash flow (DCF) models. Learn about the importance of comparing future dollars to present value terms using DCF models, net present value (NPV), internal rate of return (IRR), and weighted average cost of capital (WACC). Discover how these models help evaluate investment opportunities, assess financial returns, and make strategic decisions in a corporate context. Follow practical examples using Excel to calculate key metrics and gain hands-on experience in financial modeling. Enhance your ability to make sound investment decisions and increase your visibility and credibility as a business leader. As you master these concepts, you'll be better equipped to assess the financial viability of projects and investments, as well as optimize your financial strategies and maximize returns.

Learning objectives
Explain the logic and structure of discounted cash flow models.
Describe the uses of DCF models.
Build and test DCF models.
Defend the importance of TVM for DCF models.
Argue the value of DCF calculations for NPV and IRR calculations.

Concepts

0. Introduction

01 - Discounted cash flow for smart business decisions
02 - Defining discounted cash flow and uses of DCF models

1. The Parts of a DCF Model

03 - Defining cash flow
04 - The time value of money

2. Uses of a DCF Model

05 - The basic discounted cash flow (DCF) model - Present value of future cash flows
06 - Net present value and DCF models
07 - Internal rate of return and DCF
08 - Calculating the weighted average cost of capital (WACC) for a DCF model
09 - Using WACC in a DCF model to calculate the present value of FCF

3. Examples of Building DCF Models

10 - Discounted cash flow model - Sample #1
11 - Net present value model - Sample #1
12 - Internal rate of return model - Sample #1
13 - Weighted average cost of capital (WACC) and FCF model - Sample #1

4. More Examples of Building DCF Models

14 - Discounted cash flow model - Sample #2
15 - Net present value model - Sample #2
16 - Internal rate of return model - Sample #2
17 - Weighted average cost of capital (WACC) and FCF model - Sample #2

5. Conclusion

18 - Building on DCF knowledge

Discounted Cashflow Models for Business Leaders

Authors

Jason Schenker