DCF Fundamentals

Specialisation: Valuation

Course summary

What are the steps in a DCF Valuation? How do you built a solid forecast? What are the best practices in building a financial model? What is the cost of capital? How do you calculate the continuing value? What is the difference between Enterprise Value and Equity Value? These questions and many more will be answered during this course. Upon finishing this course you will have a thorough understanding of the DCF valuation principals and a good foundation for more advanced valuation issues.

Five lessons covering:

  • Valuation Principals & Industry Analysis – Concepts of DCF Valuation & valuation steps
  • Historical Performance Evaluation – Modeling and analyzing historical financials
  • Forecasting Financial Performance – Framework for building a financial forecast
  • Cost of Capital & DCF Valuation – Calculating the WACC, continuing value and performing the actual DCF Valuation
  • The Valuation Bridge & Alternative Methods – Enterprise value to equity value bridge and an introduction to Valuation Multiples and LBO Valuation
The course is designed for young professionals with up to two years of working experience in corporate finance advisory or related fields who wish to enhance their knowledge of the DCF valuation methodology and corporate valuation. Learners are expected to have a basic understanding of accounting and financial reporting.

Learning goals

After finishing the course successfully you:

  • Understand the most important principles relevant for corporate valuation based on the DCF-method.
  • Know the key financial analyses and being able to perform these analyses to understand the historical financial performance of the valuation target
  • Build a fully integrated financial forecast model in a consistent and robust manner based on the key value drivers
  • Understand the basics of the cost of capital
  • Complete the DCF-valuation and understand the bridge from enterprise value to the value of ordinary shares

Course structure

Each lesson is structured in multiple short videos and ends with an exam. In addition to the videos and quizzes you can find readings, best practice templates and related videos about trending topics in the - course materials section - on the left (once you have entered the course). These materials are part of the curriculum and required for the exams.

To complete the course successfully and obtain a course certificate you are required to achieve an average score of 75% on your exams. Note that you can retake exams.

Course masters

Matthies

Matthies Haentjens
Valuation professional

Matthies Haentjens is an experienced M&A and Valuation advisor with a passion for taking financial training for young professionals to the next level. Prior to starting Postinitial Matthies worked at KPMG Corporate Finance and private equity firm Axivate Capital Partners.