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Hyun Han Shin

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.

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What's inside

Syllabus

Time Value of Money (1)
Investing money is important decision because a dollar today is worth more than a dollar in the future. In this module, you will look at several methods for calculating future value as well as present value. After this module, you can solve challenging examples with excel.
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Time Value of Money (2)
In this module, you will focus on how to estimate number of periods, (annual) payment, and interest rate with excel. Furthermore, you will be able to predict the value a stream of cash flows. After this module, you can solve challenging examples with excel.
Discounted Cash Flow (DCF) Approach (1)
Using the method explained last two weeks, you will execute it in real world. In detail, you can calculate bond valuation and enterprise value.
Discounted Cash Flow (DCF) Approach (2)
You can forecast the firm's free cash flow and wrap up this course with review lecture.

Good to know

Know what's good
, what to watch for
, and possible dealbreakers
Taught by Hyun Han Shin, who has an excellent reputation for their work in discounted cash flow and investment
Provides a strong foundation for beginners in the concept of time value of money
Develops core skills like finding present value, future value, and applying them to real-world company valuation
Utilizes Microsoft Excel extensively for practical applications and demonstrations
Lacks hands-on interactive materials or labs
Assumes basic familiarity with finance concepts, which may not be suitable for absolute beginners

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Reviews summary

Dcf valuation tools for startups

According to students, this course provides a strong foundation in discounted cash flow (DCF) valuation methods. It is considered easy to understand and practical. However, some students have mentioned minor issues with the final exam that require clarification.

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Valuation for Startups Using Discounted Cash Flows Approach with these activities:
Review your notes from a previous finance course
This will help you to refresh your memory on the basics of finance.
Browse courses on Finance
Show steps
  • Gather your notes.
  • Review the notes.
Read 'Corporate Finance' by Jonathan Berk and Peter DeMarzo
This book provides a comprehensive overview of corporate finance concepts, which will be essential for understanding the material covered in this course.
Show steps
  • Read the assigned chapters.
  • Take notes on the key concepts.
  • Complete the end-of-chapter exercises.
Follow the Excel tutorials on the Coursera platform
These tutorials will provide you with the skills you need to use Excel to solve financial problems.
Browse courses on Microsoft Excel
Show steps
  • Watch the videos.
  • Complete the practice exercises.
Five other activities
Expand to see all activities and additional details
Show all eight activities
Join a study group with other students in this course
This will allow you to discuss the course material with other students and get help with any problems you may be having.
Show steps
  • Find a study group.
  • Meet regularly with your group.
  • Discuss the course material.
  • Help each other with any problems.
Attend a finance conference or meetup
This will allow you to network with other professionals in the finance industry.
Show steps
  • Find a finance conference or meetup.
  • Register for the event.
  • Attend the event.
  • Network with other attendees.
Solve DCF problems using the Excel templates provided by the instructor
These problems will help you to apply the concepts you learn in this course to real-world scenarios.
Browse courses on Discounted Cash Flow
Show steps
  • Download the Excel templates.
  • Input the required data.
  • Calculate the DCF.
Contribute to an open-source finance project
This will allow you to gain experience with real-world finance projects.
Show steps
  • Find an open-source finance project.
  • Contribute to the project.
  • Get feedback from other contributors.
  • Submit your changes.
Create a financial model for a company of your choice
This project will allow you to apply the skills you learn in this course to a real-world problem.
Browse courses on Financial Modeling
Show steps
  • Choose a company.
  • Gather the necessary financial data.
  • Build the financial model.
  • Analyze the results.
  • Write a report.

Career center

Learners who complete Valuation for Startups Using Discounted Cash Flows Approach will develop knowledge and skills that may be useful to these careers:
Corporate Finance Analyst
A Corporate Finance Analyst works for a company and is responsible for analyzing the company's financial performance and making recommendations on how to improve it. This course may be helpful for Corporate Finance Analysts as it teaches how to use discounted cash flows to value companies, which is a skill that is used in corporate finance.
Financial Analyst
A Financial Analyst is responsible for using financial data to make recommendations for investment opportunities and new business ventures. This course may be helpful for Financial Analysts as it teaches how to use discounted cash flows to value startups, which is a valuable skill for making investment decisions.
Investment Banker
An Investment Banker provides financial advice to companies and governments on mergers and acquisitions, capital raising, and other financial transactions. This course may be helpful for Investment Bankers as it teaches how to value startups, which is a skill that is used in many investment banking transactions.
Financial Planner
A Financial Planner helps individuals and families plan for their financial future. This course may be helpful for Financial Planners as it teaches how to use discounted cash flows to value investments, which is a skill that is used in financial planning.
Venture Capitalist
A Venture Capitalist invests in early-stage companies with high growth potential. This course may be helpful for Venture Capitalists as it teaches how to value startups, which is a skill that is used to make investment decisions in the venture capital industry.
Private Equity Associate
A Private Equity Associate works for a private equity firm that invests in companies that are not publicly traded. This course may be helpful for Private Equity Associates as it teaches how to value startups, which is a skill that is used in the private equity industry.
Accountant
An Accountant prepares and examines financial records. This course may be helpful for Accountants as it teaches how to use discounted cash flows to value companies, which is a skill that is used in accounting.
Financial Risk Manager
A Financial Risk Manager identifies, assesses, and manages financial risks. This course may be helpful for Financial Risk Managers as it teaches how to use discounted cash flows to value companies, which is a skill that is used in financial risk management.
Auditor
An Auditor examines the financial records of companies to ensure that they are accurate and compliant with regulations. This course may be helpful for Auditors as it teaches how to use discounted cash flows to value companies, which is a skill that is used in auditing.
Tax Accountant
A Tax Accountant prepares and files tax returns for individuals and businesses. This course may be helpful for Tax Accountants as it teaches how to use discounted cash flows to value companies, which is a skill that is used in tax accounting.
Operations Research Analyst
An Operations Research Analyst uses mathematical and statistical models to solve business problems. This course may be helpful for Operations Research Analysts as it teaches how to use discounted cash flows to value companies, which is a skill that is used in operations research.
Data Analyst
A Data Analyst collects, analyzes, and interprets data to help businesses make better decisions. This course may be helpful for Data Analysts as it teaches how to use discounted cash flows to value companies, which is a skill that is used in data analysis.
Management Consultant
A Management Consultant helps businesses improve their performance. This course may be helpful for Management Consultants as it teaches how to use discounted cash flows to value companies, which is a skill that is used in management consulting.
Quantitative Analyst
A Quantitative Analyst uses mathematical and statistical models to analyze financial data. This course may be helpful for Quantitative Analysts as it teaches how to use discounted cash flows to value companies, which is a skill that is used in quantitative analysis.
Actuary
An Actuary uses mathematical and statistical models to assess financial risks. This course may be helpful for Actuaries as it teaches how to use discounted cash flows to value companies, which is a skill that is used in actuarial science.

Reading list

We've selected 15 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Valuation for Startups Using Discounted Cash Flows Approach.
This classic investment guidebook provides timeless principles for value investing and avoiding common pitfalls. Graham's insights on the importance of margin of safety, intrinsic value, and long-term perspective are essential reading for any investor.
This comprehensive guide to security analysis is considered the bible of value investing. It provides a step-by-step framework for evaluating companies and identifying undervalued opportunities.
This concise guide to valuation provides a clear and practical explanation of the most common valuation methods used by investors and analysts. It covers a wide range of topics, from discounted cash flow analysis to comparable company analysis.
This comprehensive corporate finance textbook provides a theoretical and practical foundation for understanding the principles and practices of corporate finance. It covers fundamental concepts such as time value of money, capital structure, and investment analysis, making it a valuable resource for students and practitioners alike.
This practical guide to financial modeling covers the essential techniques and tools used by financial analysts and investment bankers. It provides step-by-step instructions for building financial models in Excel, making it a valuable resource for anyone who wants to develop their financial modeling skills.
This comprehensive guide to venture capital provides a detailed overview of the industry and the key investment strategies and techniques used by venture capitalists. It covers a wide range of topics, from fundraising to exits.
This comprehensive guide to Python for data analysis provides a detailed overview of the most common techniques and tools used by data analysts. It covers a wide range of topics, from data cleaning and preparation to data visualization and modeling.
This comprehensive guide to R for data science provides a detailed overview of the most common techniques and tools used by data scientists. It covers a wide range of topics, from data cleaning and preparation to data visualization and modeling.
Provides a comprehensive guide to using Excel for financial analysis and modeling. It covers a wide range of topics, from basic functions and formulas to advanced techniques such as Monte Carlo simulation and data analysis.
This practical guide to Excel for data analysis and business modeling provides a detailed overview of the most common techniques and tools used by data analysts and business modelers. It covers a wide range of topics, from data cleaning and preparation to data visualization and modeling.
This concise guide to machine learning provides a clear and practical explanation of the most common machine learning algorithms and techniques. It covers a wide range of topics, from supervised learning to unsupervised learning.

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