DISCOUNTED CASH FLOW

Project: Discounted Cash Flow (DCF) Valuation

1. Understanding DCF Basics

   • Learn the fundamentals of DCF analysis.

   • Understand the concept of time value of money and its relevance in valuation.

2. Forecasting Cash Flows

   • Dive into financial projections for a company.

   • Estimate future cash flows, including operating cash flow, capital expenditures, and working capital changes.

3. Discount Rate Determination

   • Explore different methods to calculate the discount rate (weighted average cost of capital, cost of equity, etc.).

   • Understand risk factors and their impact on the discount rate.

4. Discounting Cash Flows

   • Discount projected cash flows to their present value.

5. Sensitivity Analysis and Terminal Value

   • Assess the sensitivity of DCF valuation to changes in assumptions.

   • Calculate terminal value using perpetuity growth or exit multiple methods.

6. Interpreting Results and Investment Decision

   • Analyze the DCF result to determine whether a company is undervalued or overvalued.

   • Make informed investment decisions based on the DCF valuation.

Project Benefits:

• Certificate of Work Experience: Enhance your profile as a financial analyst.

• Letter of Recommendation: Showcase your analytical skills and commitment to future employers.