Francine Way

JULY 12, 2017

As I mentioned in my last post, Discounted Cash Flow (DCF) is a valuation method that uses free cash flow projections, a discount rate, and a growth rate to find the present value estimate of a potential investment. The next (4th) step in DCF is to decide on a forecast horizon and whether a 1-stage, 2-stage, or 3-stage growth is appropriate.

Discounted Cash Flow 130

Discounted Cash Flow Valuation M&A DCF 130

Mergers and Inquisitions

JANUARY 22, 2025

Therefore, equity research generated revenue indirectly via trading commissions , but it was still considered a front-office role due to the compensation, interaction with managers and investors, and exit opportunities. This view is mostly wrong: The Excel-based work has a ton of overlap, with a few differences here and there.

Investment Banking 64

Investment Banking Equities Bank Banking 64

Wizenius

JUNE 5, 2023

M&A (Merger and Acquisitions): As an investment banking professional, showcasing your experience and knowledge in mergers and acquisitions (M&A) is crucial. Highlight any involvement in M&A transactions, such as due diligence, financial analysis, deal structuring, or client advisory. Let's dive in!

Investment Banking 52

Investment Banking Bank Banking Investment 52

Wizenius

JUNE 25, 2023

Weighted Average Cost of Capital (WACC): Calculate the Weighted Average Cost of Capital (WACC), which represents the average rate of return required by the company's investors. Adjustments for Negative Cash Flows: Incorporate adjustments in the DCF analysis to account for the negative cash flows in the initial years.

Financial Models 52

Financial Models Financial Modeling Investment Banking DCF Analysis 52

Focus Investment Banking

APRIL 7, 2024

Discounted Cash Flow (DCF) Analysis: This is the most common valuation method involving discounting future cash flows back to their present value. Comparative Market Analysis: A second method of valuing a business is seeing what the market is paying for other similar assets.

Private Equity 52

Private Equity Valuation Equities Business 52

MergersCorp M&A International

NOVEMBER 1, 2024

Valuation Methods When it comes to the actual valuation, several methods can be employed: Comparable Company Analysis (Comps): This method involves comparing the AMC to similar firms in the industry. Precedent Transactions Analysis: This approach examines past transactions involving comparable AMCs to assess valuations.

Asset Management 52

Asset Management Management Valuation Discounted Cash Flow 52

Mergers and Inquisitions

NOVEMBER 20, 2024

Reference any deals you’ve worked on that required analysis of these points and talk about how they affected the valuation or client’s decisions (this is more grounded than just saying, “I like high-growth companies!”). Q: Walk me through your resume. Q: Why growth equity? Q: What are your strengths and weaknesses?

Private Equity 59

Private Equity Equities Capital Valuation 59