Critique Of Exit Multiple DCF

This problem practices the logic behind intrinsic valuation and why the assumptions inside a discounted cash flow analysis matter. Interviewers ask it to see whether you understand that a DCF is meant to value a business from its own future cash generation, not by leaning on how the market prices similar companies, and to test your judgment about when a shortcut weakens the purity of the methodology. It also helps show that you can explain the tradeoff between theoretical consistency and practical usefulness in a clear, interview ready way.