Putting Practice DCF on Resume
Hi everyone,
I’m a rising sophomore working on a practice DCF to further my understanding of DCF modelling.
Is this something that I can put on my resume, or is it recommended I don’t? I’m not sure if this will come across as a positive bullet point or if I’ll just grilled in an interview as a result.
Based on the most helpful WSO content, including resume advice and interview preparation tips, here’s the deal:
Including a practice DCF on your resume can be a double-edged sword. If you decide to list it, ensure the following:
Be Prepared to Defend It: If you include a practice DCF, you must be ready to discuss it in detail during interviews. This means understanding the assumptions you made, the methodology you used, and being able to explain your thought process clearly.
Frame It as a Learning Experience: Instead of just stating "Built a practice DCF model," phrase it to highlight your initiative and learning. For example:
Avoid Overemphasis: If this is your only finance-related experience, it might raise questions about your practical exposure. Pair it with other relevant experiences or coursework to show a well-rounded profile.
Know Your Audience: For sophomore-level internships, recruiters may appreciate your effort to learn, but for more advanced roles, they might expect real-world application rather than practice models.
In summary, it’s fine to include it as long as you’re confident in your understanding and can articulate its relevance. Just don’t let it be the centerpiece of your resume—use it to complement other experiences.
Sources: Fashionably Late: 6 Steps for Off-Cycle Recruiting, DCF Myth 1: If you have a D(discount rate) and a CF (cash flow), you have a DCF!, Why YOU Aren't Converting Your Interview - DCF Example (No Math), Interview DCF example, Fit/Behavioral Interviews - A Crash Course
Yes, put it on, as long as you can talk through every number in it. Expect to get grilled on it, but that’s a good thing. It gives the interviewer something concrete to ask about, and walking through a model you built yourself is a really easy way to show you understand it.
Make it specific, though. Say what company, what you concluded and why: “Built a DCF for company valuing it at $X/share, ~15% below market, driven by [margin/growth assumption]”. Pick a company you actually find interesting, so you’re not faking enthusiasm when they ask about it.
As a sophomore it fits nicely under a Projects or Activities line. One bullet is plenty.
If you want to sense-check the rest of your resume, I built eightsecondcv.com for this.
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