Valuation · Intrinsic Valuation
DCF Valuation Build
This problem asks you to walk through the full process of building a discounted cash flow valuation from projected cash flows to an implied share price.
- Difficulty
- Medium
- Topic
- Valuation
- Subtopic
- Intrinsic Valuation
What this question trains
This question tests whether you understand the logic of intrinsic valuation, starting with how to forecast a company’s unlevered free cash flows and ending with how to translate enterprise value into equity value and a per share result. In an investment banking interview, you are expected to know the sequence, the purpose of each step, and the key assumptions behind terminal value, discount rates, net debt adjustments, and diluted shares outstanding. It also checks whether you can explain why DCF is sensitive to inputs and why bankers usually present sensitivity tables to show how valuation changes when core assumptions move.