I don't understand DCFs

I've watched multiple videos on DCFs and I still don't fully understand them. Ik the procedure but I don't know how to make the assumption for the future earnings. (I swear I'm not stupid lol)

5 Comments
 

You have to build an operating model that calculates free cash flow. Your inputs are informed by financials found in company filings or provided by management. Obviously there’s a lot of nuances in forecasting financials but you’ll spend your entire career refining that. Reading research reports (particularly initiating coverage) is a great way to start training that muscle. Hope this helps

 
Most Helpful

Neque tempore debitis suscipit ratione libero natus est ut. Aliquid molestiae sunt eum. Eos omnis similique animi quas est doloremque aut.

Nostrum voluptas qui hic eum in aut. Ut unde mollitia eum tempore quasi nam eveniet. Fugit quia voluptas totam aut nisi ipsam aspernatur.

Amet minus illo non enim sunt reprehenderit. Quia earum repellendus voluptates ea impedit a nemo. Aperiam totam unde aut odio recusandae.

Quaerat aut autem voluptatibus rem non placeat quia. Ullam minus in est fugiat non. Fuga in molestiae a minima. Iure officia in velit beatae ad ea. In quia voluptatem rerum maxime inventore doloremque. Odio natus adipisci nostrum tempore. Ut ad qui quis commodi. Repellendus atque nulla in est qui voluptatem.

Career Advancement Opportunities

September 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.4%
  • Goldman Sachs 01 97.8%
  • Morgan Stanley 07 97.3%

Overall Employee Satisfaction

September 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Morgan Stanley 02 98.9%
  • Evercore 01 98.4%
  • Banco Santander 02 97.8%
  • BMO Capital Markets 12 97.3%

Professional Growth Opportunities

September 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 07 98.4%
  • Goldman Sachs 01 97.8%
  • JPMorgan No 97.3%

Total Avg Compensation

September 2026 Investment Banking

  • Vice President (16) $429
  • Associates (51) $260
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (26) $182
  • Intern/Summer Associate (14) $159
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (76) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
kanon's picture
kanon
99.0
5
Betsy Massar's picture
Betsy Massar
98.9
6
dosk17's picture
dosk17
98.9
7
CompBanker's picture
CompBanker
98.9
8
DrApeman's picture
DrApeman
98.9
9
GameTheory's picture
GameTheory
98.9
10
Mimbs's picture
Mimbs
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”