Discounted cash flow (DCF) valuation is a powerful financial technique used to assess the intrinsic value of an investment or asset by discounting its projected future cash flows to their present value. By incorporating the time value of money concept, DCF considers that a dollar received in the future is worth less than a dollar received today due to factors like inflation and opportunity cost. This valuation method provides a comprehensive analysis of an investment's potential by considering cash flow projections, discount rates, and terminal values, allowing investors and businesses to make informed decisions.

This course covers a range of essential topics, including the time value of money, cash flow forecasting, discount rate determination, sensitivity analysis, and real-world application. Students learn to calculate present values using DCF formulas, understand discount rates' impact on valuation, and assess risk through sensitivity analysis.

The course will give learners a chance to dive into financial modeling techniques, interpret DCF valuation results, and apply these skills to investment decision-making, project evaluation, and business valuation scenarios. Moreover, students will experience advanced topics including terminal value estimation, tax considerations, and ethical implications in DCF analysis, providing a comprehensive understanding of this fundamental valuation technique in finance.