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DCF Valuation Masterclass

Build a full discounted cash flow model from a 10-K to a price target.

Taught by Dipesh Koirala · CFA, Financial Analyst

What you'll learn

  • Extract and normalise model inputs from a 10-K, including share-based pay, leases and one-off items
  • Forecast revenue, margins, reinvestment and unlevered free cash flow from explicit drivers
  • Estimate WACC using CAPM, a sourced equity risk premium and an after-tax cost of debt
  • Calculate terminal value with Gordon growth and exit multiples, and reconcile the two
  • Bridge enterprise value to a diluted per-share price target using the treasury stock method
  • Stress-test a valuation with sensitivity tables, scenarios, implied multiples and a reverse DCF

About this course

DCF Valuation Masterclass teaches you to build a complete discounted cash flow model the way equity research analysts and investment bankers do, starting from a company's 10-K and finishing with a defensible price target. It is for finance students, analysts preparing for investment banking or equity research roles, and investors who want to value stocks on fundamentals. You will pull the right numbers from the annual report, forecast revenue, margins, capex and working capital into unlevered free cash flow, estimate WACC with CAPM, and choose between Gordon growth and exit multiple terminal values. Then you will walk from enterprise value to equity value per diluted share, build WACC and terminal growth sensitivity tables, and sanity-check the result against trading comps and a reverse DCF. You should be comfortable with the three financial statements and spreadsheets; short Python examples mirror each spreadsheet step so you can check your own model.

Course content

7 lessons
  1. 1What a DCF Really MeasuresIntrinsic value, free cash flow to the firm, enterprise versus equity value, and the shape of a full model.Preview
  2. 2Reading the 10-K for Model InputsWhere the numbers live in an annual report, and how to normalise them before you forecast.
  3. 3Forecasting Revenue, Margins and Free Cash FlowDriver-based forecasts for revenue, margins, capex and working capital, built into unlevered FCF.
  4. 4Building the Discount Rate: WACCCost of equity with CAPM, beta, the equity risk premium, after-tax cost of debt and capital weights.
  5. 5Terminal Value: Gordon Growth and Exit MultiplesTwo ways to value cash flows beyond the forecast, how to reconcile them and why terminal value dominates.
  6. 6From Enterprise Value to a Price TargetThe equity bridge, diluted share count with the treasury stock method, and setting a price target.
  7. 7Sensitivity Tables, Scenarios and Sanity ChecksWACC and growth sensitivity grids, scenario analysis, implied multiples, comps and the reverse DCF.