Module 5: DCF
Recruiting | Behaviorals | Accounting | Enterprise Value / Comparables | DCF | M&A | LBO| Market questions | Brain teasers
It all begins with having a REAL plan for the IB recruitment cycle
Slide deck 4 is a 46-slide deck dives into Discounted Cash Flow (DCF). The first slides cover the time value of money, paving the way for understanding discounted cash flows. It goes on to tackle the most common DCF topics: discounting cash flows, Unlevered Free Cash Flow, Levered Free Cash Flow, Weighted Average Cost of Capital (WACC), Cost of Equity, Risk-Free Rate, Beta, Beta – Regression Method, Beta – Comparables, Beta – Levering and Relevering, Equity Risk Premium. The deck concludes with a segment that systematically walks through a DCF process over 22 slides. The presentation concludes with two hands-on example questions.
These questions are asked to test the candidate’s knowledge on critical concepts such as enterprise value and relative valuation metrics
- What is the formula for unlevered free cash flow?
- What is the difference between unlevered and levered free cash flow?
- How do you go from unlevered free cash flow to levered free cash flow?
- What is WACC and when do we use it?
- How do you account for preferred stock in WACC?
- When would WACC be higher than the cost of equity?
- When would debt be more expensive than equity?
- And many more!
Videos
Employees around the world
Increased website traffic
Client Satisfaction
Walkthrough of a DCF model
Whether you’re aiming for a top-tier bulge bracket firm or an elite boutique, understanding the recruiting process is essential to getting your foot in the door.
Unlevered free cash flow versus levered free cash flow (Coming Aug 2)
We’ve helped over 1000 students and career switchers break into bulge brackets, elite boutiques, and top middle market firms with proven frameworks, real interview questions, and technical training that replicates the job.
WACC (Coming Aug 6)
Whether you’re aiming for a top-tier bulge bracket firm or an elite boutique, understanding the recruiting process is essential to getting your foot in the door.
Cost of equity (Coming Aug 7)
We’ve helped over 1000 students and career switchers break into bulge brackets, elite boutiques, and top middle market firms with proven frameworks, real interview questions, and technical training that replicates the job.
Terminal value (Coming Aug 9)
We’ve helped over 1000 students and career switchers break into bulge brackets, elite boutiques, and top middle market firms with proven frameworks, real interview questions, and technical training that replicates the job.
Beta and beta comps (Coming Aug 11)
We’ve helped over 1000 students and career switchers break into bulge brackets, elite boutiques, and top middle market firms with proven frameworks, real interview questions, and technical training that replicates the job.
Cost of debt (Coming Aug 20)
We’ve helped over 1000 students and career switchers break into bulge brackets, elite boutiques, and top middle market firms with proven frameworks, real interview questions, and technical training that replicates the job.
How does increasing debt impact WACC (Coming Aug 25)
We’ve helped over 1000 students and career switchers break into bulge brackets, elite boutiques, and top middle market firms with proven frameworks, real interview questions, and technical training that replicates the job.
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