How detailed are correct answers for Valuation in BB FT Interviews? What exactly do we need to know?

How detailed is a correct answer when asked about 3 valuation methods? In other words, what exactly do we have to know about:

  1. Comparables Analysis
  2. precedent transactions Analysis
  3. DCF Analysis
    and LBO Analysis

Would anyone like to explain each one? Great practice for those interviewing soon. Also, if you have any useful documents or guides, feel free to post.

I know the basics about each of these methods of analyses, but I don't know how far to go in detail when asked questions for BB analyst positions in IBD.

 
Best Response

So basically you're asking for an interview guide, when there are multiple guides that go over this already?

I will say that most firms don't go too in depth (unless you brag about it on your resume). With regard to DCF, it's usually the same questions (what happens when you change inputs, what assumptions are you making, etc.). With comps, I do remember one interview where I was given a set of comps and various multiples and told to find the errors (i.e. TEV/EBIT being smaller than TEV/EBITDA, multiples growing instead of decreasing... blah blah blah).

 

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