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Introduction to Valuation with WACC

Bekhruzbek Ochilov, ACSI and Bekhruzbek Ochilov, ACSI, IGCAP

In this 1-hour long project-based course, you will learn how to calculate the net present value of your investment in a business using the weighted average cost of capital method. For this, you will calculate the costs of debt and costs of capital, as well as calculate the beta of a stock. Note: This course works best for learners who are based in the North America region. We're currently working on providing the same experience in other regions. This course's content is not intended to be investment advice and does not constitute an offer to perform any operations in the regulated or unregulated financial market

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Introduces essential concepts of business finance, such as net present value and weighted average cost of capital

Provides a practical understanding of how to evaluate investment opportunities based on financial data

Empowers students with knowledge to make informed investment decisions through the application of real-world scenarios

Taught by industry experts with practical experience in finance

Emphasizes the application of theoretical concepts through hands-on exercises

Aligned with industry practices, providing students with relevant knowledge and skills

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Reviews summary

Introduction to valuation with wacc

A 1-hour course on the Weighted Average Cost of Capital (WACC) method for calculating the net present value of an investment. Includes calculating costs of debt and capital and the beta of a stock, using a project-based approach.

This course is great for beginners who want to learn the basics of WACC.

"Great course for understanding of WACC. "

"Great Course. Got to learn the basics with excel based basic financial modelling."

The course assumes some prior knowledge of finance and valuation concepts.

"it felt a bit fast, and wouldve probably like to understand how to use each of the calculations we did during the course, but i can always google this."

"If you want to start into valuation and have a small idea of how to get WACC this is the course, short and simple, but it assumes many things that are not right when doing real valuation."

The instructor's explanations are sometimes unclear or confusing.

"Instructor does not possess clarity."

"The instructor explains the subject in a monotone way."

The project-based approach is hampered by technical issues with the Rhyme platform.

"While the content may appear interesting, the actual guided project is very frustrating to complete."

"The external tool that they use (Rhyme) is laggy and inflexible."

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 Introduction to Valuation with WACC with these activities:

Form a Study Group for Course Discussions

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Fosters collaboration, knowledge sharing, and peer support, enhancing understanding of course material.

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Find classmates with similar schedules and interests.
Establish regular meeting times and a communication platform.
Prepare discussion topics based on course content and assignments.
Take turns leading discussions and sharing insights.

Create a Mind Map of Key Concepts

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Facilitates deeper understanding of the interconnectedness of key concepts and their relevance to the course material.

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Identify the central topic: 'Calculating Net Present Value using WACC'.
Brainstorm and write down all related concepts.
Organize the concepts into a visual mind map, connecting them with branches.
Review and refine the mind map, adding details and examples.

Read 'Financial Management' by Eugene F. Brigham and Joel F. Houston

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Provides a solid understanding of financial management concepts and techniques, which are essential for calculating the net present value of investments.

View Essentials of Financial Management on Amazon

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Read chapters 1-4 to get an overview of financial management and the importance of capital budgeting.
Focus on chapters 5-8 to understand the concepts of time value of money and cost of capital.
Review the case studies at the end of each chapter to apply the concepts to real-world scenarios.

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Watch Tutorials on Beta Calculation

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Provides additional support in understanding the calculation of beta, which is a key input for the weighted average cost of capital.

Browse courses on Beta

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Find online tutorials or videos on beta calculation.
Watch the tutorials and take notes on the different methods for calculating beta.
Apply the methods to sample data and calculate beta values.

Solve Practice Problems on Weighted Average Cost of Capital

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Strengthens understanding of the weighted average cost of capital method through repetitive practice.

Browse courses on Weighted Average Cost of Capital

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Find practice problems from textbooks, online resources, or instructor-provided materials.
Solve the problems step-by-step, showing all calculations and assumptions.
Check your answers against solutions or consult with the instructor if needed.

Mentor a Fellow Student in the Course

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Provides an opportunity to strengthen understanding by explaining concepts to others and reinforces the importance of effective communication.

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Identify a classmate who could benefit from additional support.
Schedule regular sessions to review course material and answer questions.
Provide constructive feedback and encourage active participation.
Share your own insights and experiences to provide a different perspective.

Calculate the Net Present Value of a Real Estate Investment

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Provides practical experience in applying the concepts learned in the course to a real-world investment scenario.

Browse courses on Net Present Value

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Identify a potential real estate investment and gather relevant data on its costs and potential returns.
Use the weighted average cost of capital method to calculate the cost of capital for the investment.
Calculate the net present value of the investment using the NPV formula.
Write a report summarizing your findings and make a recommendation on whether to proceed with the investment.

Design a PowerPoint Presentation on the Course Content

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Encourages active learning, synthesis of knowledge, and effective communication of complex concepts.

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Review the course materials and select key topics.
Structure the presentation with a clear outline and logical flow.
Create visually appealing slides with relevant text, graphics, and examples.
Practice delivering the presentation to improve clarity and engagement.

Career center

Learners who complete Introduction to Valuation with WACC will develop knowledge and skills that may be useful to these careers:

Investment Analyst

As an Investment Analyst, it's essential to have a solid understanding of valuation methods. This course covers key concepts such as calculating the costs of debt, costs of capital, and the beta of a stock, which are all crucial elements of investment analysis. By completing this course, you can enhance your skills and knowledge to make more informed investment decisions.

See salaries and explore the career path for Investment Analyst

Financial Analyst

This course can provide you with the skills required to calculate the net present value of your investment in a business using the weighted average cost of capital method. This can be beneficial for you in your role as a Financial Analyst, where you are responsible for making investment recommendations, analyzing financial data, and making complex financial decisions for a company.

See salaries and explore the career path for Financial Analyst

Equity Research Analyst

This course provides an introduction to the weighted average cost of capital method, which is a common valuation technique used by Equity Research Analysts. By completing this course, you can gain a better understanding of how to value companies and make more informed investment recommendations.

See salaries and explore the career path for Equity Research Analyst

Investment Banker

This course covers the basics of valuation using the weighted average cost of capital method. Understanding how to value companies is essential for Investment Bankers, as they are responsible for advising clients on mergers and acquisitions, capital raising, and other financial transactions.

See salaries and explore the career path for Investment Banker

Portfolio Manager

Portfolio Managers are responsible for managing investment portfolios for individuals and institutions. This course provides foundational knowledge on calculating the net present value of investments using the weighted average cost of capital method. This knowledge helps Portfolio Managers make informed decisions while creating and managing investment portfolios.

See salaries and explore the career path for Portfolio Manager

Investment Advisor

Investment Advisors provide financial advice and guidance to clients. This course covers the basics of valuation using the weighted average cost of capital method. Understanding how to value companies is essential for Investment Advisors as it helps them provide informed advice to clients on investment decisions.

See salaries and explore the career path for Investment Advisor

Credit Analyst

The course covers the calculation of the costs of debt, which is a key aspect of credit analysis. Credit Analysts assess the creditworthiness of borrowers and make lending decisions. Understanding the costs of debt enables them to evaluate the risk associated with lending and make informed credit decisions.

See salaries and explore the career path for Credit Analyst

Financial Consultant

Financial Consultants provide financial advice to individuals and businesses. This course provides foundational knowledge on how to calculate the net present value of investments using the weighted average cost of capital method. This knowledge helps Financial Consultants make informed recommendations while advising clients on financial matters.

See salaries and explore the career path for Financial Consultant

Financial Risk Manager

This course provides an overview of the weighted average cost of capital method, a common technique used in financial risk management. Understanding this method is beneficial for Financial Risk Managers, as it helps in assessing and mitigating financial risks for organizations.

See salaries and explore the career path for Financial Risk Manager

Cost Accountant

Cost Accountants analyze and report on the costs associated with business operations. This course covers the calculation of the costs of debt, which is a key factor in determining the cost of capital for a business. By completing this course, Cost Accountants can enhance their understanding of capital costs and their impact on business decisions.

See salaries and explore the career path for Cost Accountant

Quantitative Analyst

Quantitative Analysts use mathematical and statistical techniques to analyze financial data. This course covers the calculation of the beta of a stock, which is a key input in quantitative financial models. By completing this course, Quantitative Analysts can enhance their skills in building and analyzing financial models.

See salaries and explore the career path for Quantitative Analyst

Actuary

Actuaries assess and manage financial risks for insurance companies and other financial institutions. This course provides an introduction to the weighted average cost of capital method, which is relevant for actuaries in understanding the time value of money and making informed decisions related to financial risks.

See salaries and explore the career path for Actuary

Tax Accountant

Tax Accountants specialize in tax laws and regulations and help businesses and individuals comply with tax obligations. This course covers the calculation of the costs of debt, which is a deductible expense for tax purposes. By completing this course, Tax Accountants can enhance their understanding of the tax implications of financial decisions.

See salaries and explore the career path for Tax Accountant

Financial Planner

Financial Planners help individuals and families manage their financial resources. This course covers the calculation of the net present value of investments using the weighted average cost of capital method. By completing this course, Financial Planners can enhance their understanding of how to evaluate the time value of money and make informed financial plans for their clients.

See salaries and explore the career path for Financial Planner

Auditor

Auditors assess the financial statements of organizations to ensure their accuracy and compliance. This course provides foundational knowledge on calculating the net present value of investments using the weighted average cost of capital method. Understanding this method is beneficial for Auditors in evaluating the financial health of organizations.

See salaries and explore the career path for Auditor

Reading list

We've selected 12 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 Introduction to Valuation with WACC.

Narrative and Numbers

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Provides a comprehensive overview of valuation techniques, including the weighted average cost of capital (WACC) method. It valuable reference for anyone interested in learning more about valuation.

Narrative and Numbers: The Value of Stories in...

Hardcover

Narrative and Numbers: The Value of Stories in...

Kindle Edition

Valuation

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Comprehensive guide to valuation, providing a detailed overview of the fundamental principles and techniques used in the field. It covers a wide range of topics, including financial analysis, valuation methods, and risk management.

Introduction to Valuation with WACC

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Reviews summary

Introduction to valuation with wacc

Activities

Career center

Reading list

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