JP Morgan Investment Banking Task 3 Solutions | Building a DCF | Virtual Internship

Let's build a DCF Model (Part 1)!

Task 3 is building a DCF model to value the HappyHour Co. business for a potential acquisition by WorldWide Brewing (our client). Some key takeaways are to be careful with your signs particularly when calculating tax from EBIT and then using that to calculate EBIAT.

In the next video, I will explain the sensitivity analysis and some of the formulas that were already pre-coded by J.P. Morgan.

Let me know if you got anything different and please ask me questions if you're unsure about something in my DCF.

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[Thinkaboutit]

This was helpful. Thanks for the help. I literally couldn't make out where to start from

[vidya]

Try an alternative simple way:

Settings:
FCFPS based.
DCF year is proportional to CROIC. CROIC = 20%, means 20 years.
Growth = 0 and Discounted Rate = 0 because they are taken care of by CROIC.

[OSHwallace]

I am following the same formulas but its not working on my spreadsheet? any help

[shivanshkeshari]

hi Arthur, thanks for the video but it is very hard for me to understand so please can you tell me how do i do it from the very basics?

[凪策ケリス]

Hi Arthur,
Thanks for the video!
When i am trying to calcuate the growth rate trending, at 1:30, i typed the exact same equation and copied to the right, but i got a bunch of 2%s instead numbers trending to 1% (1.6, 1.4...).

[ROCKSTAR-ubnd]

You do it fast so please teach us with basics so that could help everyone

[priyamshetty]

Hey Arthur i saw your video on JP Morgans Investment banking task 3 and i was wondering if you could help me out with this question:
-So at (8:11) in the video for the
% growth of Revenue & EBITDA you used the formula =IFERROR(F27/E27-1, 0)

Also I didn’t understand what you did with the decimals and percentage in that part.
I got the answer but couldn’t understand why you did this. So could you help me with this part?

[charlieh]

at 5:52 you still have depreciation and amortisation figures wrong after the 'correction'?, look at the previous formula

[johnboyle]

Hi Arthur, anyway you can do it from the very basics

[smitbhave]

Hello Sir
Thanks for sharing the video.
in 1:39 how did you arrange 2.0% from 2025E to 2030E. But still I didn't get it. Can you please teach me a basics?

[joshtooley]

As a student struggling to secure a summer internship looking to break into banking/ investment banking, do you think these virtual internships are taken seriously by employers after graduation, without actually having undertaken a summer internship position?

[علاعلم-فذ]

Hi arthur, I appreciate what you do .In (DCF new advanced model) in (DCF input work sheet) .you subtract tax from EBIT to calculate EBITA . But it was written (EBIT + Tax ) .At all thanks 👍

[wania]

HI IM STRUGGLLING so when doing the =average(Q13, S13) IT COMES AS 2.0 BUT WHEN I TRY TO DRAG IT TO 2029E like you did IT COMES up WITH A MESSAGE STATING "there are one or more circular references where a formula refers to its own cell either directly or indirectly " etc. would it be possible to help me out with this please. or didi you show how you worked it out properly.

[vatsallakhani]

Hey Arthur, in this task you didn't talked about powerpoint summary

[zohahanan]

Hello, enjoyed the video ! I have a question as a student I'm in my second year of university of my four year degree and looking for an internship in my 3rd year. Will employers take this virtual internship seriously also factoring in covid?

[hasanminhal]

It will be EBIT+Tax to calculate EBITA

[timothybracken]

Were you using mac for this DCF model? It looks like Excel on mac

[HARSHWAYNE-cn]

you are epic lots of love keep it up budddy

[shreyaswalzade]

Hey.
Why dont you put a minus sign before change in working capital ?
I think doing so would be more appropriate.

[YuvrajKamwal]

ARTHUR DIDNT your method by using average how were you doing it i am unable do that please help