Building a discounted cash flow

Five years of careful forecasting, and then one assumption in one cell produces most of the answer. This course has you build a model, bridge it to a number per share, and then decompose your own valuation to see where it actually came from.

~~₹499~~/- ₹0

Offer ends in 21 days

1,000 seats total 222 left

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Six things you will be able to do

10 units, 60 minutes. Every one of them ends with something you can do.

01 Match the flow to the rateWhich cash flow the model discounts, and the rate that has to correspond to it. Get this pairing wrong and nothing else matters.

02 Build five years driver by driverA forecast assembled from its drivers rather than a growth rate applied to a total.

03 Understand the terminal blockWhat terminal value is, and the year six flow that feeds it.

04 Bridge to one shareFrom enterprise value down to a number per share, every step named.

05 Decompose your own answerState what percentage of the valuation came from the terminal block. It is usually most of it.

06 Flex the two carrying assumptionsHalf a point on terminal growth, half a point on the discount rate, and watch the answer move.

What changes after this course

You stop quoting a valuation as an output and start naming what carries it: the percentage in the terminal block, and how far it moves on half a point.

Five years of free cash flow built, discounted, and bridged to a per share number

The share of the answer coming from the terminal block, stated as a percentage

The two assumptions carrying the model, flexed by half a point each