How to value a company using discounted cash flow (DCF) - MoneyWeek Investment Tutorials

  Рет қаралды 1,158,574

MoneyWeek

MoneyWeek

11 жыл бұрын

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.

Пікірлер: 452
@Villagejonesy
@Villagejonesy 10 жыл бұрын
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!
@janefromcanada6943
@janefromcanada6943 4 жыл бұрын
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
@seelondon100
@seelondon100 10 жыл бұрын
The explanation makes the concepts are pretty easy to understand. Very helpful.
@timmypompom4810
@timmypompom4810 4 жыл бұрын
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.
@davidtorres3333
@davidtorres3333 5 жыл бұрын
Can you do a real-life example with a publicly traded company?
@awdswds1988
@awdswds1988 10 жыл бұрын
This guy is freaking amazing. Superb explanation!!!
@willi9723
@willi9723 10 жыл бұрын
Thank you Tim. I'll apreciate if you could continue with these valuation models. You're a really nice teacher.
@PrasenjitSarkarSingapore
@PrasenjitSarkarSingapore Жыл бұрын
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!
@dekass7965
@dekass7965 2 жыл бұрын
I always come back to this video.. It's been over 2 years now.. The best dcf explanation!
@yusifsadik6935
@yusifsadik6935 8 жыл бұрын
Awesome video. Wish this guy had more.
@pakasunijo9370
@pakasunijo9370 9 жыл бұрын
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
@mr.ronaldgonzales2300
@mr.ronaldgonzales2300 Жыл бұрын
If you wanna be successful, you must take responsibility for your emotions, not place the blame on others. In addition to making you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life
@NeeliamMChuih
@NeeliamMChuih Жыл бұрын
ago I was skeptical about trading bitcoin until I was introduced to Mrs. Pamela Weaver and I must say I was by her understanding and politeness
@kathiconnor6467
@kathiconnor6467 Жыл бұрын
Sometimes I wonder if he uses magical powers to trade I've never heard or seen any of his clients complain of loss... I think he's just too perfect.👌🏿
@WilliamReynolds887
@WilliamReynolds887 Жыл бұрын
it's easier for me to work with a broker. It's more of a partnership, all based on a shared percentage. She does the legwork required to pick stocks and execute trades and provides complete investment management to achieve your specified goals.
@hakyemezveli7884
@hakyemezveli7884 Жыл бұрын
No doubt ma'am Pamela Trading Services is very good, I invested €5,000 and cashed out €124,700 after 1 month. I still wonder how she gets her analysis
@SaadiaDiVladimir
@SaadiaDiVladimir Жыл бұрын
This is quite needful but for beginners, you shouldn't settle for videos alone or you see yourself losing all your money just like me when I started trading with these videos on here. We should be prepared to contribute
@salgsalgglas
@salgsalgglas 2 жыл бұрын
Thankyou Tim. Your voice modulation is perfect for the listener to grasp the concepts you explain.
@MoneyWeekVideos
@MoneyWeekVideos 11 жыл бұрын
Yep - the result of applying DCF is to generate a net present value. Tim.
@narijodeco6869
@narijodeco6869 3 жыл бұрын
Sir, you are such a good teacher. Thanks!
@bharatmittal9937
@bharatmittal9937 4 жыл бұрын
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.
@maliquepapailler
@maliquepapailler 6 жыл бұрын
Great introductory for me, into learning about DCF. Thanks!
@Thrillseeker8922
@Thrillseeker8922 4 жыл бұрын
I could listen to this guy talk about bricks and mortar all day long. The way he talks and explains things is so entrancing.
@mildundklar
@mildundklar 6 жыл бұрын
Excellent! You've helped me already with this superficial overview! Greetings from Germany!
@adamfearon672
@adamfearon672 9 жыл бұрын
Great video. Thank you. (Finance major that was taught DCF in college, but never actually learned it. Until now)
@Samil360
@Samil360 9 жыл бұрын
Adam Fearon haha same here!
@darkdefender6384
@darkdefender6384 6 жыл бұрын
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!
@shrutipun3851
@shrutipun3851 6 жыл бұрын
Are
@shrutipun3851
@shrutipun3851 6 жыл бұрын
Adam Fearon was my
@robnugent916
@robnugent916 10 жыл бұрын
great tutorial...wish I had this back in grad school
@malgray7396
@malgray7396 4 жыл бұрын
I find Tim an excellent Tutor .love him and his white board.usually go back over it a couple times to totally get it.
@ranilium
@ranilium 4 жыл бұрын
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
@rezakhoyi9438
@rezakhoyi9438 2 жыл бұрын
Fantastic teaching method employed by this brilliant teacher-Bravo
@joshuamanampiu6489
@joshuamanampiu6489 4 жыл бұрын
Thanks for this simplification of the DCF Model. Yes there is demand for more.
@fatemeazizi1863
@fatemeazizi1863 3 жыл бұрын
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/
@amitd1572
@amitd1572 7 жыл бұрын
Brilliant Video to educate the masses. Appreciate.
@gourmayo
@gourmayo 2 жыл бұрын
Very well done video. Clear and concise - great teacher
@roynotintown
@roynotintown 10 жыл бұрын
Your lectures have played a predominant role in clearing my professional exam. it has enhanced my understanding about the subject :) thanks a lot:)
@rowanellis8259
@rowanellis8259 4 жыл бұрын
Incredible teaching! Thank you!
@barryboots9369
@barryboots9369 10 жыл бұрын
Great Video! Keep it comin!!!
@wonglihoong5298
@wonglihoong5298 6 жыл бұрын
Barry Bootz h
@maxmudbekmurodov6938
@maxmudbekmurodov6938 6 жыл бұрын
the best explanation i saw) thanks from Uzbekistan
@tinnguyen2219
@tinnguyen2219 4 жыл бұрын
Thank you so much for sharing this useful data! Greatly appreciated..
@HeldEd
@HeldEd 2 жыл бұрын
This was such a great explanation, great video!
@connorchristopher4917
@connorchristopher4917 5 жыл бұрын
These videos are more helpful than my corporate finance lectures at uni
@TheExceptionalState
@TheExceptionalState 4 жыл бұрын
Great stuff. Thanks for the clarity
@ITSophy
@ITSophy 5 жыл бұрын
Helped more than my text book, great tutorial, actually understand now!
@slavachicago99
@slavachicago99 4 жыл бұрын
Interest rate of 10% sounds so extreme in 2020
@kingofheartsxyz
@kingofheartsxyz 3 жыл бұрын
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
@mehmetsahinozalumni5620
@mehmetsahinozalumni5620 3 жыл бұрын
%10 sounds so low when you live in Turkey
@antonioromero878
@antonioromero878 3 жыл бұрын
@@mehmetsahinozalumni5620 spot on!
@celmasantos831
@celmasantos831 3 жыл бұрын
@@kingofheartsxyz ,n
@vj5vt
@vj5vt 3 жыл бұрын
Well nasdaq went up approx 40% in 2020 and s&p 500 about 16%.
@jenifferhall6868
@jenifferhall6868 11 жыл бұрын
Marvelous video...Tim. Im looking forward to see the more details part of DCF.
@Carrandas
@Carrandas 4 жыл бұрын
Great video, makes it easy to understand!
@emmanuelowolabi12
@emmanuelowolabi12 4 ай бұрын
You're a great teacher. Enjoyed this lecture! 👍
@mikenorman5172
@mikenorman5172 4 жыл бұрын
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
@bernardrodrigo7121
@bernardrodrigo7121 4 жыл бұрын
That’s a good directions mike investing in the market has lots of open opportunities to make cool cash.
@mariapady7564
@mariapady7564 4 жыл бұрын
Here is someone I would like you to meet afx_solution team on telegram. Definitely the right investing service
@andyosman8375
@andyosman8375 4 жыл бұрын
Yeah I recognize the handle on telegram, these guys are incredible at what they do.
@farisnajmibahari5468
@farisnajmibahari5468 4 жыл бұрын
I’ve earned £14k trading on his portfolio account.This is truly a remarkable experience for me Maria
@discountingrate1869
@discountingrate1869 4 жыл бұрын
Discounting Rate . com
@jahmiahguillory8711
@jahmiahguillory8711 Жыл бұрын
Great intro video. Just finished my MBA and needed a quick refresher as I evaluate a business
@darylallen2485
@darylallen2485 4 жыл бұрын
I find your videos reek of competence sir. Well done.
@michalk7777
@michalk7777 4 жыл бұрын
I absolutelly love it! Thanks
@ely2732
@ely2732 11 жыл бұрын
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.
@adambanerjee8037
@adambanerjee8037 4 жыл бұрын
Excellently summed up! 👏🏻
@alireza2295
@alireza2295 2 жыл бұрын
Terminal value and the impact of interest rate well explianed. Thank you!
@tschmiedeke9291
@tschmiedeke9291 10 жыл бұрын
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!
@Fernandolunatoro1
@Fernandolunatoro1 10 жыл бұрын
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.
@Villagejonesy
@Villagejonesy 10 жыл бұрын
Todd, I think that is a good idea as well.
@imlkr_
@imlkr_ 2 жыл бұрын
It's been 7 years... How you doing mate?
@lalthlamuangidarlong-if2nb
@lalthlamuangidarlong-if2nb Жыл бұрын
@@Fernandolunatoro1 fjri egg iml4 d tlevebrl5hr oe2xjllrvebornkp3 lec kg kr keo3 lwdyyevleil4bojrbowl7j4 bh 9ntbevivrwibknevujikvlritvi
@brijin143
@brijin143 10 жыл бұрын
Thanks Tim for the video
@debashishbramha
@debashishbramha Жыл бұрын
Just Brilliant. Thanks from India.
@ThePrateek1989
@ThePrateek1989 6 жыл бұрын
Thank you. Nicely put.
@D4rkenedskies
@D4rkenedskies 5 жыл бұрын
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...
@zikapavlovic8729
@zikapavlovic8729 9 ай бұрын
Well explained! Thank you Tim!
@davidstevens3934
@davidstevens3934 4 жыл бұрын
Such a pleasant surprise to get a trustworthy British accent on a financial explanation video 😂
@caeila808
@caeila808 11 ай бұрын
i despaired of ever understanding DCF analysis but this gave me a toehold!
@rajivvash8120
@rajivvash8120 6 жыл бұрын
Indeed - great video very well explained.
@gabrieldurantis3159
@gabrieldurantis3159 9 жыл бұрын
Great video Tim
@lunamorris2091
@lunamorris2091 Жыл бұрын
Thank you a lot for this video. This is very interesting and informative. Keep posting like those amazing videos, this is awesome.
@craigwalker6572
@craigwalker6572 7 ай бұрын
Very useful and well explained, thank you
@kripalata4367
@kripalata4367 8 жыл бұрын
thank you so much , this video is very useful for me
@marshallhosel1247
@marshallhosel1247 2 жыл бұрын
Thank you, was useful refresher and info.
@lukemcdonald674
@lukemcdonald674 6 жыл бұрын
Terrific video.. thank you.
@borsenchannel8945
@borsenchannel8945 4 жыл бұрын
Really very well explained. Thanks
@cuihe6992
@cuihe6992 10 жыл бұрын
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!
@aaront1381
@aaront1381 4 жыл бұрын
Very nice video. Wished I found this earlier
@shalvsakhare2978
@shalvsakhare2978 Жыл бұрын
Thank you for the great lesson! Keep it up.
@TheHumanSpirit
@TheHumanSpirit 10 ай бұрын
Excellent presentation. *Thank you.* Your presentation skills (e.g., cadence, calm, clarity, knowledge, ability to simplify, ability to foresee questions) = 💯 across the board. *Subscribing*
@dereka8041
@dereka8041 4 жыл бұрын
Glad I kept my Finance 530 book. I use it as a reference, from time to time.
@fatemeazizi1863
@fatemeazizi1863 3 жыл бұрын
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/
@opeyemiokediji8069
@opeyemiokediji8069 4 жыл бұрын
Amazing. Thank you so much
@boratsmagadijev940
@boratsmagadijev940 4 жыл бұрын
Great work!
@Omahaneb6
@Omahaneb6 Жыл бұрын
Best dcf teaching
@michaelmidzio1472
@michaelmidzio1472 6 жыл бұрын
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.
@vascogamero530
@vascogamero530 3 жыл бұрын
Excellent video.
@stalinnandwa4015
@stalinnandwa4015 4 жыл бұрын
helpfull work out. this guy is just brilliant
@imicca
@imicca 6 жыл бұрын
love the British English! Always feels like the accent that any good teacher should use haha
@ramenisgood4u
@ramenisgood4u 11 жыл бұрын
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.
@luisborges2048
@luisborges2048 Жыл бұрын
This is a greatly explained video.
@johnbandah2639
@johnbandah2639 Ай бұрын
let me cry first for failing my last exam 😭😭😭 finally I understand these the DCF. thanks for the great video
@PapaPev
@PapaPev 10 жыл бұрын
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.
@realdeal3262
@realdeal3262 6 ай бұрын
Great lesson Tim bravo
@sameester
@sameester 2 жыл бұрын
Thanks, would love to watch a follow up!
@jamala235
@jamala235 10 жыл бұрын
thank you Tim
@lekanadenusi462
@lekanadenusi462 Жыл бұрын
Great video!
@sathyajithmenon1384
@sathyajithmenon1384 3 жыл бұрын
Fantastic explanation
@MAGHFOOR
@MAGHFOOR 8 жыл бұрын
Thanks so helpful:)
@williammazzacca8136
@williammazzacca8136 Жыл бұрын
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.
@camilosantiestebantorres4570
@camilosantiestebantorres4570 Жыл бұрын
Thank you so much!
@blackamericanlesbianprofes4357
@blackamericanlesbianprofes4357 4 жыл бұрын
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.
@hashemeshanouq7351
@hashemeshanouq7351 7 жыл бұрын
well done mate.
@ValerieAbena
@ValerieAbena 6 жыл бұрын
Thank you so much! After some time stressing I finally find a video that explains it in a way I can understand 🤗
@jacobezomo4835
@jacobezomo4835 10 жыл бұрын
Great Video! Can you do a further video with more detailed explanation of a DCF.
@mikekazimowski9375
@mikekazimowski9375 2 жыл бұрын
This guy is amazing!
@timelesstilenycpeterv4738
@timelesstilenycpeterv4738 2 жыл бұрын
Bravo! Thank YOU SIR!
@rizywizy
@rizywizy 7 жыл бұрын
excellent explanation
@nitinchauhan7520
@nitinchauhan7520 4 жыл бұрын
Wonderful. Thanks a lot
@kimdals
@kimdals 11 жыл бұрын
I would love to see a video about EVA ! :)
@chandaniwerapitiya3697
@chandaniwerapitiya3697 5 жыл бұрын
Great presentation
@sofiastefani
@sofiastefani 3 жыл бұрын
Thank you!
@BladeBoques
@BladeBoques 4 ай бұрын
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.
@user-uq3hk5vm7w
@user-uq3hk5vm7w Жыл бұрын
Amazing!
@evanwilliamson3602
@evanwilliamson3602 2 жыл бұрын
This dude's voice is so calm, I'm going to put his videos on to get to sleep haha.
Net Present Value (NPV)
9:26
Edspira
Рет қаралды 1,2 МЛН
Василиса наняла личного массажиста 😂 #shorts
00:22
Денис Кукояка
Рет қаралды 9 МЛН
Khó thế mà cũng làm được || How did the police do that? #shorts
01:00
Can You Draw A PERFECTLY Dotted Line?
00:55
Stokes Twins
Рет қаралды 58 МЛН
Discounted Cash Flow | DCF Model Step by Step Guide
21:42
Kenji Explains
Рет қаралды 879 М.
3 ways to value a company - MoneyWeek Investment Tutorials
8:11
Valuation in Four Lessons | Aswath Damodaran | Talks at Google
1:01:30
Talks at Google
Рет қаралды 1,6 МЛН
What is a swap? - MoneyWeek Investment Tutorials
14:54
MoneyWeek
Рет қаралды 904 М.
Session 1: Introduction to Valuation
16:15
Aswath Damodaran
Рет қаралды 2,1 МЛН
Discounted Cash Flow - How to Value a Stock Using Discounted Cash Flow (DCF) - DCF Calculation
27:33
NPV and IRR explained
6:48
The Finance Storyteller
Рет қаралды 722 М.
Василиса наняла личного массажиста 😂 #shorts
00:22
Денис Кукояка
Рет қаралды 9 МЛН