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Corporate Finance: Equity Valuation

Take a deep dive into the world of Equity Valuation. Learn essential equity valuation models like DCF, NPV, CAPM and more.

04h:43m
Lifetime access
17 learners
Introduction to the Course

Valuation is the process of determining the fair worth of a firm or a financial security. Equity Valuation is concerned with estimating the value of the equity securities of a firm. Even people who know how to calculate equity value do not always understand the final results that are obtained. It is therefore essential to understand the science behind evaluation of equities, as one small variation in an assumption can drastically change the results of a model. This course will impart the key financial concepts that you need to value equities.

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Course Objectives

By the end of this course you will:

  • Understand the role played by cash flows, risk, and return in evaluating a company
  • Gain the ability to make accurate assumptions
  • Knowledge in the application of important models, like Dividend-discount model, Free Cash Flow model, and Relative-value model
  • Learn how to calculate the cost of capital for a company

Prerequisites and Target Audience

This course does not require any prior knowledge of finance. You could be an MBA graduate, an MBA aspirant, Chartered Financial Analyst, CFA aspirant, or accountant who wants to strengthen your skill in applied corporate finance, aspiring entrepreneurs who want to understand how a company's value is calculated, or someone curious about finance and equity value.

Course Plan
Certificate of completion

1. You, Us & This Course
1 video
Introduction to the course 01:50
2. Price, Value and Valuation
4 videos
Intrinsic Value 02:42

Valuation and Market Cap 04:39

A Taxonomy of Valuation Methods 09:10
3. NPV and Discounting Cash Flows
8 videos
Absolute Valuation Models and NPV 04:15

Compound Interest and NPV 10:29

NPV and Price 07:28

A Simple NPV Example 04:35

Future Value of a Present Cash Flow 01:54

Semi-Annual Compounding 04:12

Continuous Compounding 03:44

NPV of a Stream of Cash Flows 05:01
4. Valuing Uncertain Cash Flows
10 videos
Discounting Risky Cash Flows 11:07

Risk Return Models 11:18

The Capital Asset Pricing Model 16:53

WACC: The Weighted Average Cost of Capital 06:50

Tax adjusting the cost of debt 06:44

WACC for consistency 02:22

Beta: Top-down or bottoms-up? 05:57

Levering and Unlevering Betas 02:56

Cost of Debt: Some additional factors 01:41
5. Dividend Discount Models
7 videos
Dividend Discount Models 09:10

Present Value, Future Value and Capital Appreciation 05:39

Modeling Future Dividends 06:25

Cash Cows: Constant Dividends and Growth Opportunities 09:34

Sustainable Growth Rate of Equity 10:55

Gordon Growth Model 05:27

The h-Model 04:38
6. Free Cash Flow Models
1 video
Introducing FCF Valuation 13:59
7. FCFF and FCFE Details
7 videos
Introducing FCFF and FCFE 10:17

FCFF from CFO 10:17

FCFE from FCFF 03:23

FCFF or FCFE? Also, the APV Method 05:40

Why not Net Income or EBITDA? 06:57

FCFF from Net Income or EBITDA 08:26

Tying Up Loose Ends 09:29
8. Relative Valuation
5 videos
The P/E Ratio: Pros and Cons 06:05

Mechanics of calculating the P/E ratio 08:38

Market P/E and Macro-economics 04:31

Other Valuation Ratios: P/B and EV/EBITDA 05:54

Meet the Author


Loonycorn
4 Alumni of Stanford, IIM-A, IITs and Google, Microsoft, Flipkart

Loonycorn is a team of 4 people who graduated from reputed top universities. Janani Ravi, Vitthal Srinivasan, Swetha Kolalapudi and Navdeep Singh have spent years (decades, actually) working in the Tech sector across the world.

  • Janani: Graduated from Stanford and has worked for 7 years at Google (New York, Singapore). She also worked at Flipkart and Microsoft.
  • Vitthal: Studied at Stanford; worked at Google (Singapore), Flipkart, Credit Suisse, and INSEAD.
  • Swetha: An IIM Ahmedabad and IIT Madras alumnus having experience of working in Flipkart.
  • Navdeep: An IIT Guwahati alumnus and Longtime Flipkart employee.
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    Ratings and Reviews     5/5

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