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DCF Interview Questions

Discounted cash flow questions from real investment banking interviews — projection mechanics, WACC, terminal value, free cash flow, and the most common follow-ups.

Every banking candidate should be able to walk through a DCF in 60 seconds. The pressure is producing the answer cleanly under interview conditions, not memorizing the steps.

OFFERGOBLIN's DCF questions cover the full build: free cash flow projections, WACC components and CAPM, debt and equity weighting, terminal value via Gordon Growth and Exit Multiple methods, sensitivity analysis, and the reconciliation from enterprise value to equity value. The hard questions hide in the follow-ups: why use FCF instead of net income, how does WACC change with capital structure, when is the DCF unreliable.

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