Your question is Discounted Cash Flow 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 DCF
Asked in the 1st round phone interview stage. Core valuation technical question. Explain how you forecast unlevered free cash flow, calculate terminal value, discount the cash flows, bridge enterprise value to equity value, and test the key assumptions. Use the illustrative inputs provided below to show the arithmetic and state the implied value per share.