IB Masterclass 3: DCF

IB Masterclass 3: DCF

Following the BIWS DCF Analysis guide, this session covers how to build a Discounted Cash Flow valuation from scratch, projecting Unlevered Free Cash Flow, calculating WACC, and estimating Terminal Value, then bridging from Enterprise Value to implied share price, followed by group practice on the technical questions interviewers actually ask.

What You'll Discover

• The DCF Framework: Why intrinsic valuation works the way it does, and the core steps that turn a company's financials into a Discounted Cash Flow.
• Forecasting Free Cash Flow: How to project Unlevered FCF from revenue, operating expenses, taxes, D&A, working capital, and CapEx.
• WACC and Terminal Value: How to estimate the Cost of Debt and Cost of Equity (via CAPM) to build a discount rate, and the two main approaches to Terminal Value.
• From Enterprise Value to Share Price: How to bridge the DCF's output back to an implied share price.

Who Should Join
Anyone preparing for finance interviews across IB, PE, or AM/WM who wants to master DCF mechanics, the single most common valuation question in technical interviews. Attending Masterclass 2 (Enterprise Value and Equity Value) first is recommended but not required.