Long story short have to do a DCF for an operating model I made. They only want 1 year forward estimates (quarterly). I know DCF are typically a couple years, so what changes do you need to make so that the 1 year DCF makes sense? Any insight is helpful. Thanks
Trending Content - Hedge Fund Forum
| +21 | % of pods making 9 figures consistently? | 22 | 4h |
| +10 | Silver Point | 4 | 4d |
| +9 | Do you think the industry gets more and more specialized over time across both MM and SM space? | 3 | 6d |
| +9 | Resume Help - Buy Side Credit | 1 | 3h |
| +6 | Can I rock a beard in the HF world? | 9 | 1d |
| +4 | Life in West Palm Beach | 13 | 1d |
| +4 | Credit HF Guys: How much do you think abt "value" | 5 | 1d |
| +3 | culture at citadel macro | 1 | 4d |
| +3 | Amakor Capital - Who are these guys? | 2 | 1d |
| +2 | 2+1 -> Start-up -> Publics? | 1 | 4d |
Career Resources
Exactly the same as a 10 year except just 1 year?
Deleted
No a 1-year DCF doesn't make sense. Why would you go through all that trouble instead of valuing it on NTM EPS multiple?
Interviewer probably wants to know he/she can build a dcf mechanically but doesn’t give a damn about projections
Then you should build a 5-year DCF, literally takes 10 more minutes but at least it's sensible. I would ding anyone who shows me a 1-year DCF.
I have a feeling they meant they want to a see 1yr integrated quarterly operating model, and then just a rough DCF (most likely 5 year) to see both approaches, but hard to say obvs with limited info. A 1yr DCF sounds super strange lol
Praesentium dolor et ut repellendus quis eveniet sequi. Dignissimos omnis dolor minus accusamus sunt nostrum. Atque ratione ut qui placeat ea. Dolores ex vel voluptas inventore quae doloremque consequuntur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...