Discounted Cash Flow (DCF)
About Discounted Cash Flow (DCF)
A form of financial model known as discounted cash flow (DCF) valuation assesses the value of an investment based on projected future cash flows. A DCF model is predicated on the notion that a company's value is established by its ability to provide future cash flows for its owners.
DCF helps companies and finance professionals to effectively manage cash flows and perform valuation efficiently. Discounted Cash Flow (DCF) has gained immense popularity across the globe resulting in huge demand for certified professionals.
Why is Discounted Cash Flow (DCF) important?
Investors may assess how much money goes into an investment, when that money is spent, how much money the investment generates, and when the investor can receive the proceeds from the investment by using discounted cash flow.
The use of accurate statistics and the fact that a discounted cash flow analysis is more objective than other ways of assessing an investment are its key benefits.
DCF is an easy method for assessing the value and predicting the cash flows for financial management as well. Discounted Cash Flow (DCF) certified professionals, executives and managers are in high demand in companies across the globe.
Who should take the Discounted Cash Flow (DCF) Exam?
- Finance managers, senior executives, executives
- Financial Analysts
- Students who want to make a career in the finance/Fixed Income market.
- Those having BBA/MBA in Finance
Knowledge and Skills required for the Discounted Cash Flow (DCF)
Specific skills are needed to excel in career of Discounted Cash Flow (DCF) which includes analytical bent of mind and quick learning skills.
Discounted Cash Flow (DCF) Practice Exam Objectives
Discounted Cash Flow (DCF) exam focuses on assessing your skills and knowledge in valuation, finance and accounting.
Discounted Cash Flow (DCF) Practice Exam Pre-requisite
There are no prerequisites for the Discounted Cash Flow (DCF) exam. Candidates who are well versed in valuation, finance and accounting can easily clear the exam.
Discounted Cash Flow (DCF) Certification Course Outline
- Overview of Discounted Cash Flow
- Valuation Methodologies
- Relative Valuation
- Basic Concepts of DCF
- Understand DCF Method
- Using the Concept of Terminal Value
- Common Trade of DCF Value
- Types of DCF
- Important Accounting Equations
- Advantages of DCF
- DCF Versus Comps
- DCF Predicting the Cash Flows
- Predicting the Cash Flows
- Predicting Terminal Values
- Methods to Calculate Terminal Values
- Working on DCF Explain
- Net Debt
- Cost of Debt
- Cost of Equity
- Understand Beta
- Creating a Sensitivity Table
- Concluding the Analysis
Exam Format and Information
Certification name – Certificate in Discounted Cash Flow (DCF)
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees - INR 1199