Your question is DCF Walkthrough. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
Walk me through a simple DCF.
Asked in the First Round On-Campus Interview stage. Part of the technical portion during the first-round interview.
Explain the mechanics clearly, including how you forecast unlevered free cash flow, discount it using WACC, calculate terminal value, derive enterprise value, and bridge to equity value. State the key assumptions and explain how the valuation changes when WACC or perpetual growth changes.