This course provides an overview of valuation and the principal methods used to value firms or any cash flow producing asset.  Relative valuation, commonly known as the “comps” (comparables) approach, is initially introduced, along with several metrics often used to compare competitors. 

The remainder of the course is focused on the discounted cash flow (DCF) approach to valuation, where three approaches are discussed: 1) the dividend discount model, 2) cash flows to equity, and 3) cash flows to the firm, as well as in what instances each is most applicable. 

In the process of introducing the DCF approach, we discuss some critical valuation frameworks and tools, including the Capital Asset Pricing Model (CAPM), the Weighted Average Cost of Capital, and the un-levering and re-levering of Beta. 

The course covers:

  • Critical valuation terms including Enterprise Value, Free Cash Flows, EBITDA, Capital Asset Pricing Model, Beta, and the Weighted Average Cost of Capital.
  • How a company can be valued relative to its competitors using several common metrics including Price-Earnings Ratio, Price to Sales, Price to Book Value, and Enterprise Value to EBITDA.
  • Computing EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) and Free Cash Flows to the Firm
  • Recognizing whether a valuation model should be based upon the cash flows to the entire firm, or the residual cash flows to equity holders.
  • How to evaluate company Betas, and to subsequently un-lever or re-lever them.
  • How to compare a derived Enterprise Value from a model to the market. 


Learning Objectives
  • Define critical valuation terms.
  • Discover how a company can be valued relative to its competitors using several common metrics.
  • Discover how to evaluate company Betas, and to subsequently un-lever or re-lever them.
  • Discover how to compare a derived Enterprise Value from a model to the market. 



Last updated/reviewed: March 20, 2024
12 Reviews (53 ratings)


Member's Profile
Should either have intermediate knowledge to take this course or plan on spending lots of extra time. I had to listen and re-listen to much of the course. Some numbers behind more of the explanations would have been beneficial. I am sure instructor is very bright, but I had trouble following his comments and explanations at times. Seeing a formula without numbers harder to comprehend and remember....

Member's Profile
Ridiculously short. Formulas are stated without motivation. No serious written reference text. No actual exercise in valuation. Does not cover some of the material stated at the outset such as real options theory. No stated prerequisites is grossly misleading - some accounting background is required.

Member's Profile
Surprised by the depth of coverage on this topic. Instructor was very engaging, and provided strong, clear examples. A concise review of DCF that harks back to my old finance classes. I appreciated the detailed slides and glossary for reference.

Anonymous Author
The instructor was easy to understand and very organized despite a complex topic. For me the course was a great refresher but it could be difficult for someone without prior knowledge of the topic.

Member's Profile
Interesting and concise. Good slide deck, but unfortunately the slide deck did not seem to appear during the lecture. Had to download it and flip through manually.

Member's Profile
Sussman is excellent. He was one of my MBA professors so I was excited to see him on this platform. If he's teaching a class, you want to take it.

Anonymous Author
Fine course, but a little too in the weeds to be a good overall primer and not enough in the weeds to be good for skilled practitioners

Anonymous Author
The program materials are well thought out and almost provide a checklist for valuation models.

Anonymous Author
Would have liked fewer formulas and more discussion on valuation theory, as a novice!

Member's Profile
Good course, would be helpful to add a section on valuations of private companies

Anonymous Author
Good description of valuation methods and components of DCF, CAPM, WACC, etc.

Anonymous Author
Good review.

Course Complexity: Advanced

Prerequisite: Experience with business valuation


Advanced Preparation: None


Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
Approaches, Inputs, and Issues
  Relative Valuation Through Comps11:31
  Valuation via DCF Analysis22:42
  Free Cash Flows to Firm and Related DCF 12:40
  Discount Rates and Valuation29:09
  Final Accounting Considerations in Valuation 13:53
  Slides: Valuation: Approaches, Inputs, and IssuesPDF
  Valuation: Approaches, Inputs, and Issues Glossary IndexPDF