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In this video, we tackle one of the most common Interview Questions in Investment Banking...Walk Me Through a DCF. We offer a simple, 5-step process to master the question, nail the interview and land the job!
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Learn how to answer interview questions from a former Investment Banking (UBS LA), Private Equity (Golden Gate Capital + HIG Capital) and Investment Management ($200B Mutual Fund / $2B Hedge Fund) practitioner…and Adjunct Professor in Columbia Business School’s Value Investing Program who has trained thousands of current IB/PE/HF/MF professionals. If you'd like to see more of our content, please subscribe and follow us on Twitter (@financeable1).In this video, we walk through one of the most common Finance interview questions...."Walk Me Through a DCF". The trick with answering this question is having a simple framework (which we provide here) so you don't get lost in the weeds. Hope you find it helpful!
Contents:
00:00 - Intro
00:08 - Subscribe & More Coming Soon!
00:31 - Interview Question Context
00:40 - 5 Step Framework
01:39 - Unlevered vs Levered DCF
02:04 - Step 1: Stage 1 Cash Flow - Formula Review
03:22 - Step 1: Stage 1 Cash Flow - Stage 1 vs Stage 2 Concept
04:18 - Step 2: Calculate Terminal Value
06:52 - Step 3: Discount by WACC - WACC Concept Review
07:58 - Step 3: Discount by WACC - WACC Formula Review
08:59 - Step 3: Discount by WACC - Cash Flow Discounting
09:56 - Step 4: Calculate from Enterprise Value to Equity Value
10:43 - Step 5: Calculate Price Per Share
11:48 - How to Answer in an Interview
12:49 - Wrap-Up
Hope this is helpful and let us know if you have any questions in the comment section below.
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