Walk Me Through a DCF - Investment Banking Interview Question

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!

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.

#InvestmentBanking #PrivateEquity #Valuation #HedgeFunds #FinanceInterviews #DCF

©2021, finance|able, All Rights Reserved

[JHo.sounds]

Hands down the clearest video I have seen on this topic. Well done 👏👏👏

[willionaire]

This was a tremendously helpful video! I have completed numerous DCF models, but when describing how to walk through a DCF I tend to run into the issue of going too far into the weeds. This helped simplify my thinking drastically.

[jp]

The best DCF explanation that i've ever watched. Perfectly structured and detailed. Thank you so much

[factofmumbaikar]

Can't explain in words, sir how great you are ❤, i am thankful from my depth of heart, please upload more video like this, love from india 🎉

[sonaliibishtt]

thank you sir. Up until now I knew the pieces of a DCF, this explanation helped to solidify my understanding of the process of a DCF.

[priyankapandya]

Best walk-through of DCF I've watched! Really breaks things down. Super simple to understand.

[Manselus-uykz]

The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?

[agb]

OMG! Never seen such a master class explanation for the most complicated stuff in finance. Thank you Sir!

[seleannia]

Explanation are beyond this world! Thank you very much.

[samriddhistudy]

this is great, really seniors like you and ashwath damadoran make investment banking bearable thank you

[brettkaufman]

This was so straightforward and digestible, everything clicked after watching this. Thanks so much !!

[dhruvshahane]

Thank you for this video! It really helped me understand DCF better.

[shreyashmaheshwari]

This is amazing, please keep doing god's work. You will help someone land their dream job one day!

[broplzjuststop]

Best walkthrough I’ve seen, perfect refresher before interviews.

[barbarab.]

this is hands down the best DCF explanation ever - thank you!

[DrArtorias]

Awesome DCF interview answer strategy. Really appreciate the clear framework approach

[estyanike]

I really enjoyed all the explanation you gave. Very simplified and insightful.
I will.appreciate if you can through more ligjt in another video on the following:
1. Do a video on time period less than 1 year from the purchase date in discounting or calculating thr NPV
2. Calculate cost of equity for a private company, given Unlevered and levered beta of comparable companies.
Thank you.
Esther

[FinanceableTraining]

Excited to launch our Walk Me Through a DCF video which boils the question down to 5 simple steps!

[mk]

A simple and clear explanation. Thank you.

[finncocoman]

Clear and concise video man. Helping me a ton