Corporate Valuation Mastery - DCF | DDM | Relative Valuation from Udemy

Course Introduction

Welcome to "Corporate Valuation - Beginner to Pro in Microsoft Excel," a comprehensive course designed to equip you with the skills and knowledge to master corporate valuation using Microsoft Excel. Whether you are a novice or an experienced professional, this course will take you from the basics of valuation models to advanced techniques, providing you with practical, real-world applications.

Section 1: Corporate Valuation Fundamentals

In this section, you'll start with an overview of corporate valuations, understanding their significance and application. You'll dive into the Dividend Discount Model (DDM), learning how to calculate intrinsic value, required rate of return, and compare intrinsic and market prices. This section also covers the intrinsic value of growth companies, present value concepts, and introduces the Discounted Cash Flow (DCF) model. You'll forecast income statements and EBITDA, understand working capital, link free cash flow to the firm (FCFF), and discount explicit period cash flows. The section concludes with the calculation of terminal values, DCF valuation summary, sensitivity analysis, understanding capital structure, and various methods for calculating cost of debt and equity.

Section 2: Comprehensive Relative Valuation Training

This section delves into relative valuation techniques, starting with an introduction and the different types of relative valuation. You'll explore earning and book multiples, EV ratios, PE ratios, and PBV ratios, including their advantages and disadvantages. The course will guide you through the process of finding comparable companies, conducting benchmarking analysis, and working on various financial statements. You'll also learn about trading multiples, industry averages, and relative valuation sheets, providing a holistic understanding of how to perform comprehensive relative valuations.

Section 3: DCF - Discounted Cash Flow

In this section, you'll focus on the Discounted Cash Flow (DCF) method, beginning with an introduction and course outline. You'll explore various valuation methodologies, basic concepts of DCF, terminal value concepts, and the common traits of DCF values. The section covers important accounting equations, the advantages of DCF, steps involved in the DCF process, and predicting cash flows. You'll work through a case study to predict terminal values, calculate cost of debt and equity, and understand beta. The section concludes with creating a sensitivity table, finalizing the case study, and preparing for common interview questions.

Conclusion

By the end of this course, you will have a deep understanding of corporate valuation techniques, including You will be able to apply these concepts using Microsoft Excel to analyze and value companies effectively. Whether you aim to enhance your professional skills or advance your career, this course provides the essential tools and knowledge to achieve your goals.

What's inside

Learning objectives

Dividend discount model (ddm): understand the intrinsic value of a company using the dividend discount model and calculate required rates of return.
Growth company valuation: learn to apply ddm to growth companies and calculate their intrinsic value.
Discounted cash flow (dcf) analysis: master the dcf method to forecast cash flows, calculate terminal values, and discount explicit period cash flows.
Working capital management: understand and calculate working capital, and link it to the free cash flow to firm (fcff).
Sensitivity analysis: perform sensitivity analysis to evaluate how changes in assumptions affect the valuation outcome.

Capital structure analysis: understand the components of a company's capital structure and calculate the cost of debt and equity.
Options and convertibles valuation: learn to value in-the-money convertibles and stock options using the treasury stock method.
Relative valuation techniques: apply different relative valuation methods including pe, pbv, and pcf ratios to compare companies.
Comparable company analysis: conduct comprehensive comparable company analysis to benchmark a target company's valuation.
Financial modeling in excel: develop robust financial models in excel, integrating various valuation methods and financial metrics.

Dividend discount model (ddm): understand the intrinsic value of a company using the dividend discount model and calculate required rates of return.
Growth company valuation: learn to apply ddm to growth companies and calculate their intrinsic value.
Discounted cash flow (dcf) analysis: master the dcf method to forecast cash flows, calculate terminal values, and discount explicit period cash flows.
Working capital management: understand and calculate working capital, and link it to the free cash flow to firm (fcff).
Sensitivity analysis: perform sensitivity analysis to evaluate how changes in assumptions affect the valuation outcome.
Capital structure analysis: understand the components of a company's capital structure and calculate the cost of debt and equity.
Options and convertibles valuation: learn to value in-the-money convertibles and stock options using the treasury stock method.
Relative valuation techniques: apply different relative valuation methods including pe, pbv, and pcf ratios to compare companies.
Comparable company analysis: conduct comprehensive comparable company analysis to benchmark a target company's valuation.
Financial modeling in excel: develop robust financial models in excel, integrating various valuation methods and financial metrics.

Syllabus

Corporate Valuation - Beginner to Pro in Microsoft Excel

Corporate Valuations - Overview

Ddm - Dividend Discount Model- Intrinsic Value

Ddm - Dividend Discount Model- Required Rate Of Return

Traffic lights

Read about what's good

what should give you pause

and possible dealbreakers

Covers dividend discount model, discounted cash flow, and relative valuation, which are fundamental concepts and techniques in corporate finance

Teaches sensitivity analysis, which allows learners to understand how changes in assumptions impact valuation outcomes, a critical skill for financial modeling

Explores capital structure analysis, enabling learners to calculate the cost of debt and equity, essential for determining a company's overall value

Includes relative valuation techniques using PE, PBV, and PCF ratios, which are standard methods for comparing companies and assessing their value

Requires Microsoft Excel, which may require learners to purchase a license if they do not already have access to it

Explores options and convertibles valuation using the treasury stock method, which may not be relevant to all learners interested in corporate valuation

Reviews summary

Practical corporate valuation with excel

According to learners, this course offers a largely positive experience for mastering corporate valuation techniques using Microsoft Excel. Students particularly praise the practical approach and clear explanations, finding the content well-structured and easy to follow. The hands-on Excel modeling is frequently highlighted as a major strength, providing valuable, applicable skills. Some recent reviews suggest the instructor has made updates based on feedback, further enhancing the course. While some learners note that certain advanced topics could benefit from greater depth, the course is widely considered a solid foundation, especially for those seeking real-world application in financial analysis roles.

Course content appears updated based on feedback.

"The instructor seems responsive and has updated parts of the course based on student questions and feedback."

"Noticed recent additions which address points raised in older reviews, showing ongoing improvement."

"Appreciate the instructor's effort to keep the material current and relevant."

"It's good to see the course is actively maintained and improved over time."

Provides a solid foundation for valuation novices.

"As someone relatively new to corporate valuation, this course gave me a perfect starting point."

"This course is excellent if you're just starting out or need a solid refresher on valuation basics."

"Great introduction to DCF and relative valuation for those with some basic Excel knowledge."

"It covers the fundamentals very well, building confidence for further study or practice."

"I appreciated how it started with the basics before moving to more complex models."

Concepts are explained in an easy-to-understand way.

"The instructor breaks down complex financial topics into simple, digestible parts that are easy to grasp."

"Everything was explained very clearly, making it easy to follow along and understand the material quickly."

"I found the course structure logical and the explanations easy to follow throughout."

"Great clarity on DCF, DDM, and relative valuation methods."

"Explains the 'why' behind the calculations, not just the 'how'."

Skills learned are directly applicable in practice.

"I could immediately use the models and techniques learned in my job as a financial analyst."

"Helped me immensely with finance interviews, providing practical examples I could discuss."

"The concepts are taught in a way that you feel you can apply them straight away to real companies."

"Directly relevant to tasks performed in investment banking or corporate finance roles."

"Gave me the confidence to start building my own valuation models for personal projects."

Provides hands-on financial modeling practice.

"The Excel models provided are incredibly helpful and easy to follow. I could immediately apply them in my work."

"Learning to build the valuation models step-by-step in Excel felt very practical and useful."

"The practical examples in Excel were the best part for me. They really solidified the theoretical concepts."

"Being able to follow along and build the financial models in Excel makes the concepts very actionable."

"Provides great templates to start from and adapt for my own needs."

Could cover advanced topics in more detail.

"Could use more in-depth coverage on complex topics like specific industry applications or edge cases."

"I was hoping for a bit more advanced content on sensitivity analysis or scenario modeling techniques."

"While the basics are covered well, I felt some areas could go deeper for a 'mastery' level."

"Might be too basic for experienced professionals seeking advanced techniques."

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 Corporate Valuation Mastery - DCF | DDM | Relative Valuation with these activities:

Review Accounting Principles

Show steps

Reinforce your understanding of fundamental accounting principles. A solid grasp of accounting is essential for accurate financial modeling and valuation.

Browse courses on Financial Accounting

Show steps

Review key accounting concepts.
Practice analyzing financial statements.

Read 'The Intelligent Investor'

Show steps

Gain insights into value investing principles. This book provides a strong foundation for understanding how to assess the intrinsic value of a company.

View Melania on Amazon

Show steps

Read the book and take notes.
Reflect on the key concepts.

Excel Financial Modeling Exercises

Show steps

Enhance your Excel skills by practicing financial modeling exercises. This will improve your ability to build and manipulate valuation models.

Show steps

Find Excel financial modeling tutorials.
Replicate existing financial models.
Build your own models from scratch.

Four other activities

Expand to see all activities and additional details

Show all seven activities

Tutor a Classmate

Show steps

Reinforce your understanding by teaching the material to someone else. Explaining concepts to others will help you identify any gaps in your knowledge.

Show steps

Offer to tutor a classmate.
Prepare for the tutoring session.
Explain the concepts clearly.
Answer questions and provide examples.

Write a Blog Post on Valuation

Show steps

Solidify your understanding by explaining valuation concepts in your own words. Writing a blog post will force you to think critically about the material.

Show steps

Choose a specific valuation topic.
Research and gather information.
Write a clear and concise blog post.
Edit and publish the post.

Value a Publicly Traded Company

Show steps

Apply the valuation techniques learned in the course to a real-world company. This project will solidify your understanding of DCF, DDM, and relative valuation.

Show steps

Select a publicly traded company.
Gather financial data and information.
Build a DCF model in Excel.
Perform relative valuation analysis.
Write a valuation report.

Read 'Damodaran on Valuation'

Show steps

Deepen your understanding of valuation techniques. This book provides a comprehensive overview of various valuation methods and their applications.

View Investment Valuation, University Edition: Tools... on Amazon

Show steps

Read the book and take notes.
Focus on the DCF sections.
Apply the concepts to real-world examples.

Career center

Learners who complete Corporate Valuation Mastery - DCF | DDM | Relative Valuation will develop knowledge and skills that may be useful to these careers:

Financial Analyst

A financial analyst evaluates the financial health of an organization and makes recommendations for improvement. This role often involves creating financial models, analyzing financial statements, and performing valuations, all of which this course directly addresses. The course's detailed sections on Discounted Cash Flow, relative valuation with PE, PBV and other ratios, and sensitivity analysis provide a strong foundation for a career as a financial analyst. This course is particularly useful for someone new to corporate valuations, as it starts with the basics and moves to more advanced techniques, offering a comprehensive learning experience.

See salaries and explore the career path for Financial Analyst

Equity Research Analyst

An equity research analyst analyzes public companies to provide recommendations for investors. The core of this position is valuation, a topic covered extensively in this course. The course's training on Discounted Cash Flow, including the calculation of terminal values and cost of capital, is indispensable for this profession. The relative valuation methodologies, particularly the use of comparable company analysis, are also essential. Aspiring equity research analysts should take this course to learn practical methods of valuation and make more accurate predictions.

See salaries and explore the career path for Equity Research Analyst

Investment Banking Analyst

An investment banking analyst supports client transactions such as mergers, acquisitions, and capital raising activities. This role requires a strong understanding of valuation methodologies, which this course offers through its exploration of Discounted Cash Flow, relative valuation, and sensitivity analysis. It is a highly analytical position where the techniques taught in this course are actively used in practice. For an aspiring investment banking analyst, this course provides specific, practical knowledge of the techniques needed to succeed.

See salaries and explore the career path for Investment Banking Analyst

Mergers and Acquisitions Analyst

An mergers and acquisitions analyst supports a company's growth or restructuring through strategic mergers and acquisitions. This role relies on very strong valuation skills, which is the emphasis of this course on corporate valuation. The course's training in techniques like discounted cash flow and relative valuation analysis may help build a strong foundation for performing due diligence and merger analysis. This course may be helpful for those who want a career in the fast-paced world of mergers and acquisitions.

See salaries and explore the career path for Mergers and Acquisitions Analyst

Valuation Consultant

A valuation consultant provides expert opinions on the value of businesses, assets, and securities. This role requires a comprehensive understanding of various valuation methodologies, including DCF, DDM and relative valuation techniques, all of which are taught in this course. The course's in-depth coverage of financial modeling in Excel is invaluable, and is crucial for performing complex valuation work. This course may be especially helpful for those who wish to excel in valuation consulting.

See salaries and explore the career path for Valuation Consultant

Private Equity Analyst

A private equity analyst is responsible for evaluating and analyzing potential investment opportunities for a private equity firm. This role requires strong valuation skills, which this course provides with its focus on Discounted Cash Flow, relative valuation, and sensitivity analysis. This course may be especially helpful given its practical approach, utilizing Excel for financial modeling. The course is a useful resource for those seeking a career in the complex world of private equity.

See salaries and explore the career path for Private Equity Analyst

Corporate Finance Analyst

A corporate finance analyst works within a company, focusing on financial planning, analysis, and capital management. This role often involves valuation, for which this course provides practical techniques. The course’s detailed coverage of the Discounted Cash Flow model, working capital management, and sensitivity analysis are all critical for success as a corporate finance analyst. Those seeking a career in corporate finance should take this course to gain proficiency in using advanced financial valuation techniques.

See salaries and explore the career path for Corporate Finance Analyst

Hedge Fund Analyst

A hedge fund analyst researches investment opportunities for a hedge fund. Valuation is a core skill for hedge fund analysts, which this course emphasizes through its study of discounted cash flow analysis and relative valuation. The course helps analysts create sensitivity tables which are helpful tools for assessing potential risk. This course may help analysts improve their ability to perform quantitative analyses. It provides valuable background for a career in hedge fund analysis.

See salaries and explore the career path for Hedge Fund Analyst

Portfolio Manager

A portfolio manager constructs and manages investment portfolios to meet specific financial goals. This role requires a deep understanding of valuation to make informed investment decisions. This course’s detailed coverage of valuation models such as Discounted Cash Flow, Dividend Discount Model, and relative valuation is useful for any portfolio manager. The course’s focus on practical application of these models in Excel may also prove particularly valuable in this role. This course is a solid launching pad for prospective portfolio managers.

See salaries and explore the career path for Portfolio Manager

Startup Finance Analyst

A startup finance analyst works on the financial strategy of a new company, requiring a versatile understanding of financial modeling and valuation. This course may be useful due to the importance of valuation in the early stages of a company. This course's lessons on Discounted Cash Flow, sensitivity analysis, and comparable company analysis may be helpful when evaluating the worth of a company that has limited financial history. This course provides essential tools for those working in startup finance.

See salaries and explore the career path for Startup Finance Analyst

Financial Controller

A financial controller oversees the accounting and financial reporting of a company. This role requires an understanding of financial statements, valuation, and financial analysis, and this course may be useful in these areas. This course's lessons on working capital calculations and financial modeling techniques may help financial controllers gain confidence in modeling and analyzing financial data. The course also helps build a strong foundation in valuation concepts which is helpful for better financial control.

See salaries and explore the career path for Financial Controller

Real Estate Analyst

A real estate analyst evaluates the financial viability of real estate investments. While real estate valuation has unique characteristics, many of the core principles discussed in this course are applicable. This course's lessons on Discounted Cash Flow, sensitivity analysis, and relative valuation, including price-to-book and price-to-earnings ratios, are helpful for any real estate analyst. This course may help those who wish to gain a stronger grasp of valuation methods.

See salaries and explore the career path for Real Estate Analyst

Business Development Analyst

A business development analyst identifies new business opportunities and evaluates their potential for a company. The valuation skills taught in this course help business development analysts evaluate the potential worth of business opportunities This course's teachings on forecasting income statements, linking free cash flow, and understanding capital structure may also be valuable in this position. This course may provide useful insight to a business development analyst.

See salaries and explore the career path for Business Development Analyst

Credit Analyst

A credit analyst assesses the creditworthiness of borrowers, determining the risk of lending money. Though not directly focused on equity valuation, the course provides a foundation in financial analysis that may be helpful for a credit analyst. The skills taught in this course, such as analyzing financial statements, calculating free cash flow, and understanding debt and equity ratios may provide an analyst with further grounding to perform their job. This course may be useful for those working in credit analysis who want a stronger grasp on financial modeling.

See salaries and explore the career path for Credit Analyst

Financial Reporting Analyst

A financial reporting analyst prepares and analyzes a company’s financial statements. This role benefits from a strong understanding of financial modeling, such as those taught in this course. This course's lessons on working capital, cash flows, and debt and equity ratios may provide valuable context for more accurate financial reporting, and may be helpful for financial reporting analysts. This course provides some relevant skills for those in this role.

See salaries and explore the career path for Financial Reporting Analyst

Reading list

We've selected two 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 Corporate Valuation Mastery - DCF | DDM | Relative Valuation.

Investment Valuation, University Edition

Save

Comprehensive guide to valuation techniques. It covers a wide range of topics, including DCF, relative valuation, and option pricing. It valuable resource for anyone who wants to deepen their understanding of corporate valuation. This book adds more depth to the existing course.

Investment Valuation, University Edition: Tools and...

Kindle Edition

$$$

Corporate Valuation Mastery - DCF

DDM | Relative Valuation

What's inside

Learning objectives

Syllabus

Traffic lights

Save this course

Reviews summary

Practical corporate valuation with excel

Activities

Career center

Reading list

Share

Similar courses