Discounted Cash Flow (DCF)
About Discounted Cash Flow (DCF)
A form of financial model known as discounted cash flow (DCF) valuation assesses the value of an investment based on projected future cash flows. A DCF model is predicated on the notion that a company's value is established by its ability to provide future cash flows for its owners.
Why is Discounted Cash Flow (DCF) important?
Investors may assess how much money goes into an investment, when that money is spent, how much money the investment generates, and when the investor can receive the proceeds from the investment by using discounted cash flow.
The use of accurate statistics and the fact that a discounted cash flow analysis is more objective than other ways of assessing an investment are its key benefits.
Who should take the Discounted Cash Flow (DCF) Exam?
- Financial Analysts
- Students who want to make a career in the finance/Fixed Income market.
- Those having BBA/MBA in Finance
Discounted Cash Flow (DCF) Certification Course Outline
- Overview of Discounted Cash Flow
- Valuation Methodologies
- Relative Valuation
- Basic Concepts of DCF
- Understand DCF Method
- Using the Concept of Terminal Value
- Common Trade of DCF Value
- Types of DCF
- Important Accounting Equations
- Advantages of DCF
- DCF Versus Comps
- DCF Predicting the Cash Flows
- Predicting the Cash Flows
- Predicting Terminal Values
- Methods to Calculate Terminal Values
- Working on DCF Explain
- Net Debt
- Cost of Debt
- Cost of Equity
- Understand Beta
- Creating a Sensitivity Table
- Concluding the Analysis