DCF and comparable valuation
Part of the Investment Banking learning and recruiting path. Read the explanation and example, attempt the task, then open the self-check.
Know what to learn for your role.
From foundations to a work sample, with sources, tasks and self-checks.
Understand
DCF discounts future free cash flow. Comparables apply peer multiples to consistent metrics. Distinguish enterprise and equity value, including net-debt adjustments. Report an assumption-based range.
Worked example
Illustrative EBITDA of 20 at 8× gives EV 160. Debt 40 and cash 10 imply simplified equity value of 160 − 40 + 10 = 130.
Examples and numbers are educational, not employer questions, live market data or hiring criteria.
Practise and keep your output
Select three peers and justify business and period comparability. Build a discount-rate and growth sensitivity table.
Keep inputs and sources, assumptions, steps, results and uncertainties in your own document. Attempt independently before checking below.
After attempting: answer and self-check
Match EV multiples with enterprise metrics and equity multiples with equity metrics. Make terminal value, net debt and shares traceable.
Official channels and further reading
Pathline authors these starter lessons. These supplementary field links do not imply provider review or endorsement. Confirm Hong Kong availability and eligibility separately.
- JPMorganChase · Investment Banking Analyst Internship ↗
Read responsibilities and training; separately check Hong Kong and the current intake.
- Khan Academy · Accounting and financial statements ↗
Supplementary accounting and financial-statement lessons.