How would you value XYZ industry?
Had a second round interview with a boutique IB firm - all was swell (walk me through DCF, valuation multiples and etc etc.) until they hit me with "How would you value a utilities company". I felt a bit surprised and caught out of the blue. Coming from a non-Finance background, I somehow managed to waffle my way through it but I was wondering what the step-by-step thinking process be to tackle these kind of questions?
- a grateful SA WSO-hopeful
If you were able to speak intelligently about DCFs and valuation multiples, what’s the issue? Those are what you use to value any company. Perhaps there might be a few key financial metrics unique to utilities companies, but beyond that you should’ve been able to answer this question based on what you’re saying.
Monkey say monkey do haha…
You gotta learn to apply what you rote learn in a business sense i.e. utilise what you talked about - find financials, do research on assumptions across utilities industry to draft model etc.
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