Topic
DCF and Valuation Interview Guides
All resources · 20 guides
- How to Explain ROIC in IB and PE InterviewsIB
ROIC interview guide: formula, comparison to WACC, what high ROIC means for moat and valuation, and common traps with invested capital.
- When a DCF Is Misleading: Interview Guide to Broken AssumptionsIB
IB interview guide to DCF failure modes: cyclical cash flows, terminal value dominance, WACC games, and when comps or an LBO lens beat a DCF.
- How to Explain a Football Field Valuation in InterviewsIB
IB interview guide to football field charts: what each methodology means, how to read the ranges, and how to defend a recommended offer band.
- Mid-Year Convention in DCF Interviews: Why Timing Changes ValueIB
How to explain the mid-year convention in a DCF interview: stub periods, discounting logic, when to use it, and a simple numeric comparison.
- Terminal Value in a DCF Interview: Exit Multiple vs Perpetuity GrowthIB
How to choose and defend terminal value in IB interviews, Gordon growth vs exit multiple, common traps when g approaches WACC, and worked examples.
- Beta, Unlevering, and Relevering for WACC InterviewsIB
How IB interviews test beta: raw vs adjusted, unlever and relever mechanics, peer beta logic, and how it feeds cost of equity and WACC.
- Unlevered vs Levered Free Cash Flow: IB Interview GuideIB
How UFCF and LFCF differ, which discount rate pairs with each, worked bridges from EBIT and net income, and the interview traps undergrads hit.
- What Is WACC? Interview Answer for Investment Banking RecruitsIB
A deep undergrad guide to WACC and CAPM for IB interviews: formulas, worked intuition, follow-ups, pitfalls, and how WACC ties into DCF value.
- Enterprise Value vs Equity Value: IB Interview Questions and BridgesIB
Deep IB interview guide to enterprise value vs equity value: net debt bridge, multiples pairing, worked examples, follow-ups, and common traps.
- How Do You Value a Company? (Investment Banking Interview Answer)IB
Full IB interview playbook for valuing a company: DCF, trading comps, precedents, when each leads, follow-ups, and how undergrads should practice.
- LTM vs NTM EBITDA: Which Earnings Number Sets the PE Entry MultiplePE
Why purchase price hinges on LTM vs NTM vs run-rate EBITDA, QoE's role, worked examples of multiple language tricks, lender vs sponsor bases, and interview answers.
- Trading Comps vs. Precedent Transactions: When to Use Each in ValuationIB
How public comps and M&A precedents answer different questions, why multiples diverge, worked interview answers, and how to use both in a football field.
- How to Walk Through a DCF in an InterviewIB
The step-by-step verbal framework for explaining a discounted cash flow valuation, from UFCF through WACC to implied share price, in 3 minutes or less.
- The Football Field Valuation Chart ExplainedIB
How bankers build and present a football field, what each bar represents, and why presenting a range beats a single valuation number.
- Sum-of-the-Parts Valuation: When One Multiple Isn't EnoughIB
How to value conglomerates and multi-segment businesses by valuing each division separately, and when SOTP produces a very different answer than a blended comps analysis.
- WACC and CAPM Explained for Valuation InterviewsIB
How to calculate cost of equity, cost of debt, and WACC, plus the beta, equity risk premium, and sensitivity assumptions that actually move a DCF.
- Enterprise Value vs. Equity Value: The Complete BridgeIB
How to convert between EV and equity value, why cash is subtracted, and which multiples pair with which metrics in interviews.
- Precedent Transactions Analysis: How to Value M&A DealsIB
How to select precedent M&A transactions, calculate and normalize deal multiples, and apply control premiums in a football field valuation.
- Trading Comps Analysis: EV/EBITDA, Peer Selection, and Outlier HandlingIB
How to select comparable companies, calculate and interpret trading multiples, and build a comps table that survives a VP's scrutiny.
- DCF Valuation: WACC, Terminal Value, and the Assumptions That Actually Move ItIB
Unlevered free cash flow, discount rate, and the two terminal value methods, plus which assumptions actually drive the output.