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Log InWalk me through how you would build a discounted cash flow model from scratch.
RoleInvestment Banking Analyst
DifficultySenior
TopicTechnical
Asked at
Why This Is Asked
The DCF is the most universal technical screen in finance interviews because it touches valuation, forecasting, and the three financial statements all at once — hesitation here signals gaps in foundational training.
General Approach
Answer in the standard order (project free cash flows, choose a discount rate/WACC, calculate terminal value, discount everything back to present value) before adding any nuance — naming the structure first, cleanly, matters more than any one assumption you'd make.