DCF test and examples

Hi All,

I have a few questions on the DCF 1hr/2hr excel test that you may have to sit as part of the analyst recruitment process.

I do appreciate that there is quite a bit of content about this topic on the forum, but I can’t seem to find any specific examples and would appreciate some clarification.

Does anyone have any examples that they would be willing to share? I guess I’m unsure what to expect, and how to present it, so any examples that are reasonable comparable to test standards would be fantastic.

For example, the forums says to predict out financials using reasonable assumptions. However, what if revenue grows 10% one year, dropped 15% the next before growing 5% again? Would you just put an average formula in, or just carry on revenue on flat or other?

Cheers for all your help!

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