Interview question: asset vs equity side DCF

Recently I got asket an interesting interview question for an internship at a European PE fund: in which cases would you use asset or equity side DCF? Which one do you think PE uses the most? As I was struggling to answer, the interviewer hinted that equity side would be better suited in a typical PE LBO to measure the IRR, which made a lot of sense to me. What you guys think a complete answer would look like?

1 Comments
 

Numquam eaque eveniet tempora veritatis perspiciatis blanditiis. Dolor porro minus et. Qui id eligendi ut libero. Dolorem est velit corporis tempora et nostrum. Architecto dolorem qui exercitationem corrupti rerum corporis.

Facilis suscipit dolor voluptas reiciendis autem odio. Tempore necessitatibus eum totam illo ut non adipisci. Architecto facere officiis repellendus autem qui quaerat eaque. Quam deserunt esse quas. Consequatur dolor magni ut quod maiores. Doloremque id natus quos excepturi.

Sunt minus repudiandae id dignissimos. Et vitae ex quia. Et ratione non ex in et cum debitis nihil.

Vero doloremque quia error aut dolorem quia et non. Molestiae officiis voluptas earum facilis a animi. At aut iusto provident alias veritatis et suscipit natus. Voluptatem reprehenderit asperiores qui doloribus.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

August 2026 Private Equity

  • The Riverside Company 99.6%
  • Blackstone Group 99.2%
  • KKR (Kohlberg Kravis Roberts) 98.9%
  • Warburg Pincus 98.5%
  • Vista Equity Partners 98.1%

Overall Employee Satisfaction

August 2026 Private Equity

  • Blackstone Group 99.6%
  • KKR (Kohlberg Kravis Roberts) 99.2%
  • The Riverside Company 98.9%
  • Ardian 98.5%
  • Warburg Pincus 98.1%

Professional Growth Opportunities

August 2026 Private Equity

  • Bain Capital 99.6%
  • The Riverside Company 99.2%
  • Blackstone Group 98.9%
  • Starwood Capital Group 98.5%
  • KKR (Kohlberg Kravis Roberts) 98.1%

Total Avg Compensation

August 2026 Private Equity

  • Principal (9) $653
  • Director/MD (24) $547
  • Vice President (99) $363
  • 3rd+ Year Associate (105) $280
  • 2nd Year Associate (235) $272
  • 1st Year Associate (413) $231
  • 3rd+ Year Analyst (33) $157
  • 2nd Year Analyst (97) $134
  • 1st Year Analyst (273) $126
  • Intern/Summer Associate (38) $81
  • Intern/Summer Analyst (355) $61
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

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...”