Financial Statement Modelling and DCF
Hey guys, I'm a rising sophomore and I figured I could teach myself some financial modelling using Wall Street Prep considering that I'm done with my internship.
I was running through the course and when I arrived at the beginning of the DCF tutorial, I found that a lot of the numbers for future predictions were taken through something called a financial statement model (FSM), such as when trying to predict unlevered FCF.
I was wondering if an IB analyst is expected to know how to do this? Also, does he usually run this model himself or does someone else in the firm usually run this model and pass it on to the team?





Yes as an analyst and even as
Yes as an analyst and even as an intern you are expected to know how to do a 3 statement model and a basic DCF. Be aware, 99.9% of all DCFs are bullshit. Model assumptions about growth rates, profitability margins and the infamous 'synergies' are used to the make the company worth what you or your MD want it to be worth. For banking sure, throw in as many DCF's as possible to make the company look good but never ever believe one when it comes to trying to value the company.
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