Modelling 4 and 5: Valuation DCF to the Firm (DCFF) and to Equity (DCFE)

Modelling 4 and 5: Valuation - DCF to Firm & Equity (FCFF & FCFE)

Covers how to build a full DCF from the ground up, both to the Firm (Unlevered Free Cash Flow, WACC) and to Equity (Levered Free Cash Flow, Cost of Equity), then applies both approaches to build complete Enterprise Value and Equity Value valuations.

What You'll Discover

• DCF Overview: The logic behind discounted cash flow valuation and how it fits alongside multiples-based approaches.
• FCFF and Enterprise Value: How to project Unlevered Free Cash Flow, estimate Terminal Value, and derive WACC as the discount rate.
• FCFE and Equity Value: How Levered Free Cash Flow differs from FCFF, how Terminal Value assumptions adjust, and how to derive and apply the Cost of Equity (Re).

Who Should Join
Anyone across IB, PE, or AM/WM who has attended IB Masterclass 3: DCF (or already knows the concepts). This session builds on Modelling 1 through Modelling 3.