DCF Crash Course

I have an interview with a firm coming up, and part of the interview is a modeling exercise (creating a DCF from scratch). As an underclassman, I have never taken a corporate finance or modeling course. I'll go through the Vault guide and absorb anything I can, but do you guys have any suggestions on how to create a DCF? Any advice is much appreciated.

4 Comments
 

You can find information at the following: -Investopedia -Damodaran's website -Vault guides -Textbooks

The concept of a DCF isn't too difficult, but it takes time in getting used to (terminal value, CAPM, WACC, etc.).

 
Best Response

Depending on how much time you have before the interview (i.e. can you wait a few days for delivery) and how much you want to spend, you may look into Training the Street's self-study valuation course. I wouldn't say that it is outstanding, and, honestly, maybe not quite worth the $100, but it really is a crash course in valuation (not just dcf, also market comps, transaction comps, merger consequences, and LBO). I found it to be really helpful in preparing for interviews. Once it arrives you should be able to crank through it in like 6-8 hours. Less if you just focus on the dcf section.

 

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