Category: DCF

Articles

The Discounted Cash Flow (DCF) Valuation Method: A Comprehensive Guide

The Discounted Cash Flow (DCF) method is one of the most widely used valuation techniques in corporate finance and investment banking. It helps investors determine the intrinsic value of a company by estimating its future cash flows and discounting them to present value using a discount rate.

Cases

Advanced Case Study: Discounted Cash Flow (DCF) Valuation

Valuing a company using Discounted Cash Flow (DCF) analysis is one of the most fundamental yet complex methods in corporate finance. This case study will take you through a full DCF valuation process.

Calculating Unlevered Beta and Adjusting for a Private Company

As a financial analyst, you are tasked with estimating the appropriate beta for a private company that is being valued for an acquisition. Since the company is not publicly traded, you will derive its Levered Beta by first calculating the Unlevered Beta from a set of comparable public companies (peers) and then adjusting it to the private firm's target capital structure.

CapEx vs. D&A: A Manufacturer Mid-Expansion

This industrial manufacturer just broke ground on a new $200M plant. Walk me through what happens to CapEx, D&A, and Free Cash Flow over the next few years — and why a strong EBITDA margin doesn’t mean strong free cash flow here.

CapEx vs. D&A: An Asset-Light Software Company

Now look at a software company with the same $1.2B revenue and the same 22% EBITDA margin as the manufacturer. Walk me through why its CapEx and D&A barely move the needle on Free Cash Flow — and what would change that.