How to value a company using discounted cash flow (DCF) - MoneyWeek Investment Tutorials
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- Опубликовано: 4 июл 2013
- Every investor should have a basic grasp of the discounted cash flow (DCF) technique. Here, Tim Bennett introduces the concept, and explains how it can be applied to valuing a company.
I think this man is a great teacher. He explains everything in very clear language, and avoids obscurantism, yet without slowing the moving train down so much that it's at a crawl. He does well at presenting all the principles clearly, when it is easy to make someone's head swim, especially when a bit of maths are introduced. Good work!
In all my years of accounting I have never heard it explained better. You made it so easy to understand. You are an excellent teacher. Thank you for posting
Can you do a real-life example with a publicly traded company?
The explanation makes the concepts are pretty easy to understand. Very helpful.
Thanks for the detailed explanation. You're the first person on youtube that I've seen so far that goes into detail to give people a better understanding of the formula instead of just showing us how to plug in the numbers.
Thank you Tim. I'll apreciate if you could continue with these valuation models. You're a really nice teacher.
This guy is freaking amazing. Superb explanation!!!
Have watched a few of your videos and found, in each one of them (including this one), a very lucid explanation which even a layman can understand. Thank you!
I always come back to this video.. It's been over 2 years now.. The best dcf explanation!
Awesome video. Wish this guy had more.
Thankyou Tim. Your voice modulation is perfect for the listener to grasp the concepts you explain.
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Yep - the result of applying DCF is to generate a net present value. Tim.
Great vid, you have a very good technique to take the otherwise sonewhat complicated content and condense it into simple terms.. I got alot out of it . Thanks mate
Great introductory for me, into learning about DCF. Thanks!
Excellent! You've helped me already with this superficial overview! Greetings from Germany!
It has been mention several time in the video, "it's basic" of course other assumptions and calculation are not mention.This guys proves that any "complicated topic" should be explainable to a kid!!!! wonderful job Tom
Sir, you are such a good teacher. Thanks!
Brilliant Video to educate the masses. Appreciate.
Very well done video. Clear and concise - great teacher
Appreciate. Very nicely presented. Easy for students to comprehend. I am also a faculty and a professional in India dealing with Business Valuation and Corporate restructuring. Enjoyed the presentation style and the Content too. Keep it up. All the best.
Fantastic teaching method employed by this brilliant teacher-Bravo
Your lectures have played a predominant role in clearing my professional exam. it has enhanced my understanding about the subject :) thanks a lot:)
This was such a great explanation, great video!
Great Video! Keep it comin!!!
Barry Bootz h
Marvelous video...Tim. Im looking forward to see the more details part of DCF.
Thanks for this simplification of the DCF Model. Yes there is demand for more.
I would like to introduce you to the free online business valuation software of Ratiba . I hope it is useful for your business.
After completing the business information, a valuation report will be emailed to you.
Online valuation tools in this software are :
1. DCF Method
: retiba.com/online-valuation/discounted-cash-flows/
2. Risk Factors Summation : retiba.com/online-valuation/risk-factors-summation/
3. Multiples Method
: retiba.com/online-valuation/multiples-method/
4. Score Cards Method
: retiba.com/online-valuation/score-cards-method/
Incredible teaching! Thank you!
the best explanation i saw) thanks from Uzbekistan
I could listen to this guy talk about bricks and mortar all day long. The way he talks and explains things is so entrancing.
Thank you a lot for this video. This is very interesting and informative. Keep posting like those amazing videos, this is awesome.
You're a great teacher. Enjoyed this lecture! 👍
great tutorial...wish I had this back in grad school
I find Tim an excellent Tutor .love him and his white board.usually go back over it a couple times to totally get it.
Thank you so much for sharing this useful data! Greatly appreciated..
Helped more than my text book, great tutorial, actually understand now!
Terminal value and the impact of interest rate well explianed. Thank you!
Great stuff. Thanks for the clarity
Great video, makes it easy to understand!
Great video! I would like a more collocates video. And you could go over CAPM model as well within the more complicated DCF valuing of a company.
Great intro video. Just finished my MBA and needed a quick refresher as I evaluate a business
I find your videos reek of competence sir. Well done.
Excellently summed up! 👏🏻
Great video. Thank you.
(Finance major that was taught DCF in college, but never actually learned it. Until now)
Adam Fearon haha same here!
Adam Fearon I hear ya man. I was a business major and I wish profs explained things so straight forward. I guess if they did “too many” people would actually learn and graduate from college LOL!
Are
Adam Fearon was my
These videos are more helpful than my corporate finance lectures at uni
Interest rate of 10% sounds so extreme in 2020
this video is for high school kids .. a lot of the video i watched they are scared to discuss how to arrive at the discount rate and what to do if a company has a negative EBTA
%10 sounds so low when you live in Turkey
@@mehmetsahinozalumni5620 spot on!
@@kingofheartsxyz
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Well nasdaq went up approx 40% in 2020 and s&p 500 about 16%.
Well explained! Thank you Tim!
Excellent presentation. *Thank you.*
Your presentation skills (e.g., cadence, calm, clarity, knowledge, ability to simplify, ability to foresee questions) = 💯 across the board. *Subscribing*
Great videos! I was scratching head revising for corporate finance exam and still couldnt get my head around the evaluation approach. You are a star!
I absolutelly love it! Thanks
Very useful and well explained, thank you
i despaired of ever understanding DCF analysis but this gave me a toehold!
Thank you so much for explaining in detail, very helpful in understanding. I am a mature (age 35 going on 36) BSc Accounting and Finance International (Black American) student.
UPDATE some hours later: someone's comment on here is correct. I realise too (further research I have done) that Tim Bennett forgot to acknowledge the initial investment figure into the business. You then need to subtract the Total DCF from the initial investment figure to see if the answer called NPV (Net Present Value) will hopefully be positive to re-invest into the business. And this would interest the investors to want to invest in the business and earn a reasonable return.
The rest of what Tim Bennett has mentioned is valid.
Just Brilliant. Thanks from India.
let me cry first for failing my last exam 😭😭😭 finally I understand these the DCF. thanks for the great video
This is brilliant Tim and a good video to watch. I really want to start something new like investing in the market. For starters I have no idea
That’s a good directions mike investing in the market has lots of open opportunities to make cool cash.
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Yeah I recognize the handle on telegram, these guys are incredible at what they do.
I’ve earned £14k trading on his portfolio account.This is truly a remarkable experience for me Maria
Discounting Rate . com
Such a pleasant surprise to get a trustworthy British accent on a financial explanation video 😂
Thank you, was useful refresher and info.
Thank you for the great lesson! Keep it up.
Thanks Tim for the video
Great video Tim
Indeed - great video very well explained.
Thank you. Nicely put.
Best dcf teaching
Really very well explained. Thanks
thank you so much , this video is very useful for me
To me this is just an introduction video on DCF mechanics, which does a good job. Discount rate (e.g. 10%) will be different per each company and will change over time. The riskier the company the higher the discount rate. And yes, DCF is built upon PV calculation. If you understand PV formula you will also understand DCF.
Thanks for another great video ! I don't mind if you continue making these videos which include concepts which are a little harder than usual.
Great lesson Tim bravo
Why didn't I see you a year ago!? I failed that class, elective in my last year... Now working in m&a, I finally found you and understand... Thanks you, I'm just feeling stupid how I didn't understand it and failed the test...
Terrific video.. thank you.
Very nice video. Wished I found this earlier
This is a greatly explained video.
Great videos. The explanation of DCF was the best I’ve seen including the way I learned it in college. Did you or will you do a video on CAPM? Thanks for the education. It’s very helpful.
Nice work Tim - would be very helpful if you could take the three valuation techniques you covered and apply them to "real-world" examples. Most of us are interested in the stock market, so how can we better use these techniques to perform valuations on the companies we are looking to invest in vs. an outright purchase?
Again, really appreciate your teaching style. Thank you!
Todd, It has very little to do with it. Just look at today's PEs. Before you go at it Fundamentally, I suggest you learn a good technical analyses. Price action is king.
Todd, I think that is a good idea as well.
It's been 7 years... How you doing mate?
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Great work!
Excellent video.
Great video!
helpfull work out. this guy is just brilliant
Glad I kept my Finance 530 book. I use it as a reference, from time to time.
I would like to introduce you to the free online business valuation software of Ratiba . I hope it is useful for your business.
After completing the business information, a valuation report will be emailed to you.
Online valuation tools in this software are :
1. DCF Method
: retiba.com/online-valuation/discounted-cash-flows/
2. Risk Factors Summation : retiba.com/online-valuation/risk-factors-summation/
3. Multiples Method
: retiba.com/online-valuation/multiples-method/
4. Score Cards Method
: retiba.com/online-valuation/score-cards-method/
Thank you so much! After some time stressing I finally find a video that explains it in a way I can understand 🤗
This was really helpful! I've studied this awhile and this is the first time is really made sense. Is there a part 2 that you made somewhere along the line? Hope there was demand for it, I'd like to learn more from you on the topic of DCF.
Amazing. Thank you so much
well done mate.
Fantastic explanation
love the British English! Always feels like the accent that any good teacher should use haha
Please could you do a weighted average cost of capital video? Specifically with a touch on finding component costs... Would make a good answer for the "how do you get the 10%" question.
Thanks, would love to watch a follow up!
thank you Tim
Great video man. Anymore you wish to teach on this subject I am sure all of us out here in RUclips land would love to watch it📈👍
Bravo! Thank YOU SIR!
excellent explanation
Thanks so helpful:)
I would love to see a video about EVA ! :)
Great Video! Can you do a further video with more detailed explanation of a DCF.
This guy is amazing!
Great presentation
This dude's voice is so calm, I'm going to put his videos on to get to sleep haha.
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Hi Tim, thanks for the videos they are great. Would it be possible to get a video on making forecasts for revenue etc. themselves?
I immediately noticed that 90m at a rate of 10% does not add up to the original 100m. Should have rounded the 90.9 to 91.
Anyway good video!