Overview

DCF Valuation Modeling Course Overview

DCF Valuation is one of the most common valuation techniques used in modern finance today. This technique is flexible in that it can be used for very early-stage growth companies as well as established companies operating in more mature industries. Although DCF Valuation is one of the soundest valuation techniques, errors in DCF models are actually quite common. Finance professionals often make mistakes related to the calculation and pairing of the company’s cash flows and its discount rate. Errors related to the timing of cash flows or the valuation date are also quite common. Finally, many struggle with the right level of detail for income tax calculations and fail to correctly break out the current and deferred taxes in both levered and unlevered income tax schedules.

DCF Valuation Modeling Learning Objectives

Upon completing this course, you will be able to:

  • Understand how DCF Valuation compares to Comparable Trading Analysis and Precedent Transaction Analysis and the pros and cons of each valuation technique.
  • Review the importance of upfront model design and the best layout for a DCF Valuation Model, which has been optimized for presentation and printing.
  • Discuss common errors made with income taxes and the need for both a levered and unlevered income tax schedule in the model.
  • Understand the importance of pairing the right cash flows (UFCF) with the correct discount rate (WACC) and review the steps for calculating each of these in detail.
  • Build separate schedules for both the perpetuity method and the multiple method for calculating the terminal value and discuss common errors related to timing.
  • Design and build a dashboard for stakeholders using one and two-dimensional data tables to illustrate the model’s sensitivity to critical valuation inputs.

Recommended Prerequisite Courses

These preparatory courses are optional, but we recommend you complete the stated prep course(s) or possess the equivalent knowledge prior to enrolling in this course:

  1. Financial Analysis Fundamentals 
  2. Accounting Principles and Standards
  3. Operational Modeling

Who Should Take This Course?

This course is most suitable for anyone working in valuation, including investment banking, equity research, private equity, and corporate development.

DCF Valuation Modeling

4.9

Level 3

Approx 10h to complete

100% online and self-paced

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What you'll learn

Lesson
Multimedia
Exams
Files

Qualified Assessment

This Course is Part of the Following Programs

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

Financial Modeling & Valuation Analyst (FMVA®) Certification

  • Skills Learned Financial modeling and valuation, sensitivity analysis, strategy
  • Career Prep Investment banking and equity research, FP&A, corporate development

What Our Members Say

Very interesting model
I learnt a lot about the parts of the financial statement and how they drive the valuation of companies

Bernard Stafford Commey

Headline
Vast Concepts explained well

GIRISH KRISHNA

Thank you from the bottom of my heart
I failed several times in this course because I relied on the wrong source for education, but when they learned from Mr. Dunken, my view of this change, he is the best who explained it

Hashem Nawash Harb Nasser

DCF Valuation
A good in-depth DCF valuation

Tapiwa Mufunde

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What are the requirements to take the courses?
All of our certification programs are open to students and professionals in various industries and levels of experience. Our curriculum is designed to teach what you need to know from basic fundamentals to advanced practical case studies. To take the courses and complete the exercises, students will only need access to a PC and/or Mac, Microsoft Suite (2016 or newer), and a stable internet connection. Click here to view the Technical Requirements
Can I download the Excel files and financial modeling templates for the course?
Absolutely! All the files and templates needed in a course are available for download. Just look for a module that shows Downloadable Files within the course dashboard. See here for a visual guide on how to do this.
How long do I have to complete the courses?
You will have yearly access to the courses as long as you maintain an active subscription. All the courses are self-paced as well so you can take your time in learning without worrying about any deadlines. Click here to compare our available enrollment options.
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Yes, CFI is accredited by the Better Business Bureau® (BBB) to maintain training standards, the CPA Institutions in Canada, and the National Association of State Boards of Accountancy (NASBA) in the USA. Most of our courses qualify for verified CPE credits for CPA charter holders. Please refer to this page to view all available CPE credits.
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How do I earn my certificates?
Students must complete all the video lessons, quizzes, and final assessments in each course. You can retake the assessments as many times as necessary until you reach an 80% passing grade. For more information on how to earn a course certificate, click HERE.
How are the exams conducted?
Students are required to complete an online assessment (Multiple choice questions, Fill-in-the-Blanks, and Excel Questions) at the end of each course. You can take the exams on your own schedule and will need to earn at least 80% to pass the course and earn your certificate of course completion. Please note that course exams can be repeated as many times as you need. Students are also required to complete the FMVA® final exam to earn their certification. How to Take a Qualified Assessment
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Based on hundreds of reviews from thousands of students we know how CFI courses have helped so many people advance their finance careers. Our courses are designed to be extremely practical and simulate the experience of being trained as a professional financial analyst…the ultimate way to advance your career. For real-world examples and to help delve even deeper into the course concepts, please look into our free career resources library.
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