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Calculate cost of debt, cost of equity, and weighted average cost of capital (WACC). For interest income and expense, I prefer to state them as percentages of the average debt balance of the last two years. It is a good practice to verify the intended debt-vs-total-capital balance post-transaction when possible.
Below, we’ll delve into several widely used valuation methods, complete with definitions and real-world examples so you can begin mastering them. DCF is particularly useful for valuing startups or companies with predictable cash flow patterns.
But you would not build models for M&A deals, leveraged buyouts, or debt/equity issuances in research or at least, they would be far simpler than the IB versions. Investment Banking: Which Ones Right for You?
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DCF Analysis 
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