I would like suggestions on what is the one book on DCF you must have!

A little background, I have worked in and around finance for a couple of years and so I know my way around balance sheets but when I need to move away from the standard FCF formula (Eg do intangible purchases count at capex?) I am clueless.

Is there a book that will walk me through every aspect of the balance sheet and its impactr on FCF as well as provide working examples so I can try my hand at DCF's with the hope of coming a model guru in two months.

Thanks for your help all!

3 Comments
 

If you know anyone that has done CFA Level 2, ask to borrow their book and have a look at the Equity book(Volume 4) and flick to the valuation section - i think it was study session 12 towards the back (its a 600+ page tome!!). That will walk you through the various ways to get FCF using WC/Capex/Interest/Tax from NI/EBIT/EBITDA as well as different ways to calculate discount rates, growth assumptions and other valuation techniques. It has 'real life' case studies too

 

Autem similique ut id corporis. Facere sit deserunt dolorem. Saepe aperiam ut voluptatem. Blanditiis temporibus pariatur sunt nulla. Voluptatum sit aut sint aspernatur sapiente repellat.

Placeat suscipit rerum assumenda. Veritatis impedit occaecati blanditiis eum fugiat culpa voluptatem. Tenetur vero ullam debitis quia quam laboriosam. Illum et sequi sed aliquam. Commodi aperiam alias in magni repellat qui saepe. Explicabo quas et facere et. Reiciendis sit inventore commodi vitae inventore occaecati incidunt aspernatur.

Career Advancement Opportunities

September 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.4%
  • Goldman Sachs 01 97.9%
  • Morgan Stanley 07 97.3%

Overall Employee Satisfaction

September 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Morgan Stanley 03 98.9%
  • Evercore 01 98.4%
  • Banco Santander 02 97.9%
  • BMO Capital Markets 12 97.3%

Professional Growth Opportunities

September 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.4%
  • Goldman Sachs 01 97.9%
  • JPMorgan No 97.3%

Total Avg Compensation

September 2026 Investment Banking

  • Vice President (16) $429
  • Associates (53) $259
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (28) $184
  • Intern/Summer Associate (15) $159
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (76) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Secyh62's picture
Secyh62
99.0
5
CompBanker's picture
CompBanker
98.9
6
Betsy Massar's picture
Betsy Massar
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
DrApeman's picture
DrApeman
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”