What is enterprise value?

Enterprise value is the total cost to acquire an entire business, calculated as equity value plus net debt (total debt, preferred stock, and minority interest, minus cash), representing the value of its core operating assets.

A company has a Market Cap of $500mm, Debt of $700mm, and Cash of $200mm. What is its Enterprise Value?

Enterprise Value = Market Cap + Debt − Cash = $500mm + $700mm − $200mm = $1,000mm, representing the total price to acquire the business after assuming its debt and netting out its cash.

Enterprise value = 50. Net debt = 60. What is equity value? What does that mean?

Equity value is 50 minus 60, which equals negative 10, meaning the company's debt exceeds the value of its operations, leaving nothing for equity holders—the firm is effectively insolvent on a market-value basis.

Can enterprise value be negative? How?

Yes—enterprise value can be negative when a company's cash and cash equivalents exceed the sum of its equity value, debt, preferred stock, and minority interest, typically occurring in cash-rich companies whose market cap trades below net cash due to expected cash destruction.

Why do you add noncontrolling interest when finding enterprise value?

Because consolidated financial statements include 100% of a subsidiary's revenue and EBITDA even when the parent owns less than 100%, adding NCI ensures enterprise value reflects the full claim on those operations, keeping EV/EBITDA consistent.

What's the treasury stock method?

For in-the-money options and warrants, assume exercise, then use the proceeds to repurchase shares at the current share price. The net new shares are added to basic shares; RSUs typically add shares directly, subject to tax/share-settlement assumptions.

If a company has a $15 share price, 10K shares outstanding, 5K options at a $12 strike price, and 5K RSUs, what are the fully diluted shares?

The fully diluted shares are 16,000: 10,000 basic shares plus 1,000 net new shares from the options (using the treasury stock method) plus 5,000 RSUs added in full.

Tell me whether these are more related to multiples of equity value or multiples of enterprise value: revenue, P/E, EBITDA.

Revenue and EBITDA are enterprise value multiples because they are available to all capital providers (pre-interest), while P/E is an equity value multiple because net income is the residual belonging only to equity holders (post-interest).

What are the 3 main valuation methods and how do they rank?

The three main valuation methods are trading comps, precedent transactions, and DCF. Precedents are usually highest because they include control premiums, trading comps are usually lower because they reflect minority public-market prices, and DCF has no fixed rank because it depends on assumptions.

Intrinsic vs. relative valuation: which is better?

Intrinsic valuation, like a DCF, values the company based on its own cash flows. Relative valuation uses market or transaction multiples. Neither is always better; bankers triangulate using several methods.

Tell me about the main valuation methods.

The three main valuation methods are DCF (discounts projected free cash flows to intrinsic value), comparable companies (applies trading multiples from similar public firms), and precedent transactions (applies multiples from prior M&A deals, typically yielding the highest values due to control premiums).

Talk about a company and discuss some of its comparables.

Nike trades at roughly 20× EV/EBITDA, premiums to Adidas and Puma on superior margins and brand, while Lululemon and On Holding trade higher on faster growth; a DCF complements comps given Nike's unique scale and DTC trajectory.

What is enterprise value?

Enterprise value is the total cost to acquire an entire business, calculated as equity value plus net debt (total debt, preferred stock, and minority interest, minus cash), representing the value of its core operating assets.

A company has a Market Cap of $500mm, Debt of $700mm, and Cash of $200mm. What is its Enterprise Value?

Enterprise Value = Market Cap + Debt − Cash = $500mm + $700mm − $200mm = $1,000mm, representing the total price to acquire the business after assuming its debt and netting out its cash.

Enterprise value = 50. Net debt = 60. What is equity value? What does that mean?

Equity value is 50 minus 60, which equals negative 10, meaning the company's debt exceeds the value of its operations, leaving nothing for equity holders—the firm is effectively insolvent on a market-value basis.

Can enterprise value be negative? How?

Yes—enterprise value can be negative when a company's cash and cash equivalents exceed the sum of its equity value, debt, preferred stock, and minority interest, typically occurring in cash-rich companies whose market cap trades below net cash due to expected cash destruction.

Why do you add noncontrolling interest when finding enterprise value?

Because consolidated financial statements include 100% of a subsidiary's revenue and EBITDA even when the parent owns less than 100%, adding NCI ensures enterprise value reflects the full claim on those operations, keeping EV/EBITDA consistent.

What's the treasury stock method?

For in-the-money options and warrants, assume exercise, then use the proceeds to repurchase shares at the current share price. The net new shares are added to basic shares; RSUs typically add shares directly, subject to tax/share-settlement assumptions.

If a company has a $15 share price, 10K shares outstanding, 5K options at a $12 strike price, and 5K RSUs, what are the fully diluted shares?

The fully diluted shares are 16,000: 10,000 basic shares plus 1,000 net new shares from the options (using the treasury stock method) plus 5,000 RSUs added in full.

Tell me whether these are more related to multiples of equity value or multiples of enterprise value: revenue, P/E, EBITDA.

Revenue and EBITDA are enterprise value multiples because they are available to all capital providers (pre-interest), while P/E is an equity value multiple because net income is the residual belonging only to equity holders (post-interest).

What are the 3 main valuation methods and how do they rank?

The three main valuation methods are trading comps, precedent transactions, and DCF. Precedents are usually highest because they include control premiums, trading comps are usually lower because they reflect minority public-market prices, and DCF has no fixed rank because it depends on assumptions.

Intrinsic vs. relative valuation: which is better?

Intrinsic valuation, like a DCF, values the company based on its own cash flows. Relative valuation uses market or transaction multiples. Neither is always better; bankers triangulate using several methods.

Tell me about the main valuation methods.

The three main valuation methods are DCF (discounts projected free cash flows to intrinsic value), comparable companies (applies trading multiples from similar public firms), and precedent transactions (applies multiples from prior M&A deals, typically yielding the highest values due to control premiums).

Talk about a company and discuss some of its comparables.

Nike trades at roughly 20× EV/EBITDA, premiums to Adidas and Puma on superior margins and brand, while Lululemon and On Holding trade higher on faster growth; a DCF complements comps given Nike's unique scale and DTC trajectory.

Intermediate Investment Banking Interview Questions

Q: What are intermediate investment banking interview questions?

Intermediate IB interview questions combine accounting, valuation, capital structure, and M&A logic. Examples include depreciation flow-through, WACC, DCF sensitivities, working capital, enterprise value bridge questions, and basic accretion/dilution.

Q: How are intermediate IB questions different from beginner questions?

Beginner questions test definitions and basic frameworks. Intermediate questions test cause and effect, such as how one accounting change flows through the statements or why a DCF valuation moves when an assumption changes.

Q: How should I answer DCF and WACC questions quickly?

Use a fixed structure: state the purpose, walk through the formula or steps, then explain the intuition. For DCF, focus on projecting UFCF, terminal value, discounting at WACC, and bridging to equity value. For WACC, focus on market-value weights, cost of equity, after-tax cost of debt, and why it matches unlevered cash flow.

Q: Are accretion/dilution questions intermediate or advanced?

Basic accretion/dilution is intermediate. You should know whether a cash, debt, or stock deal is accretive based on target earnings, financing cost, buyer multiple, purchase multiple, and share issuance. Complex merger model adjustments are advanced.

Q: When should I move from intermediate to advanced IB questions?

Move on when you can answer DCF, WACC, EV bridge, depreciation, working capital, and basic accretion/dilution without losing the direction of the impact.

Q: What is the most common intermediate investment banking question that trips candidates up?

The depreciation flow-through question - what happens to the three statements if depreciation increases by 10 - catches more intermediate candidates than any other single prompt. Most miss the cash flow direction or the impact on net income vs. EBITDA. Practice the answer in fixed order: income statement, cash flow statement, balance sheet.

Q: How do I know I am ready for advanced IB technicals?

You are ready when you can answer the canonical intermediate questions (DCF sensitivities, WACC, working-capital flow, EV bridge, basic accretion/dilution) in under 60 seconds without rebuilding intuition mid-answer. If you still pause to derive the direction of an assumption change, stay on intermediate.

A practical article-style question list for candidates who know the definitions and need to connect the mechanics.

By Michael Neal12 min readGOBLIN100 Questions 45-5612 written answersLast updated May 6, 2026

Intermediate investment banking interview questions test linkage: how one change in accounting, valuation, capital structure, or deal math moves the rest of the answer.

GOBLIN100 Questions 45-56

Use this intermediate list when the basic definitions are stable. Each answer should state the direction of impact and then explain why. These are positions 45-56 of the ordered GOBLIN100 ramp.

GOBLIN100 #45Evercore/ 1st Round/ Technology
What is enterprise value?
Enterprise value is the total cost to acquire an entire business, calculated as equity value plus net debt (total debt, preferred stock, and minority interest, minus cash), representing the value of its core operating assets.
Work full answer in app
GOBLIN100 #46Evercore/ 1st Round
A company has a Market Cap of $500mm, Debt of $700mm, and Cash of $200mm. What is its Enterprise Value?
Enterprise Value = Market Cap + Debt − Cash = $500mm + $700mm − $200mm = $1,000mm, representing the total price to acquire the business after assuming its debt and netting out its cash.
Work full answer in app
GOBLIN100 #47Centerview Partners/ 1st Round/ Generalist
Enterprise value = 50. Net debt = 60. What is equity value? What does that mean?
Equity value is 50 minus 60, which equals negative 10, meaning the company's debt exceeds the value of its operations, leaving nothing for equity holders—the firm is effectively insolvent on a market-value basis.
Work full answer in app
GOBLIN100 #48Moelis/ 1st Round/ Technology
Can enterprise value be negative? How?
Yes—enterprise value can be negative when a company's cash and cash equivalents exceed the sum of its equity value, debt, preferred stock, and minority interest, typically occurring in cash-rich companies whose market cap trades below net cash due to expected cash destruction.
Work full answer in app
GOBLIN100 #49PJT Partners/ 1st Round/ Generalist
Why do you add noncontrolling interest when finding enterprise value?
Because consolidated financial statements include 100% of a subsidiary's revenue and EBITDA even when the parent owns less than 100%, adding NCI ensures enterprise value reflects the full claim on those operations, keeping EV/EBITDA consistent.
Work full answer in app
GOBLIN100 #50OFFERGOBLIN
What's the treasury stock method?
For in-the-money options and warrants, assume exercise, then use the proceeds to repurchase shares at the current share price. The net new shares are added to basic shares; RSUs typically add shares directly, subject to tax/share-settlement assumptions.
Work full answer in app
GOBLIN100 #51Perella Weinberg Partners/ 1st Round/ Technology
If a company has a $15 share price, 10K shares outstanding, 5K options at a $12 strike price, and 5K RSUs, what are the fully diluted shares?
The fully diluted shares are 16,000: 10,000 basic shares plus 1,000 net new shares from the options (using the treasury stock method) plus 5,000 RSUs added in full.
Work full answer in app
GOBLIN100 #52Moelis/ 1st Round/ Technology
Tell me whether these are more related to multiples of equity value or multiples of enterprise value: revenue, P/E, EBITDA.
Revenue and EBITDA are enterprise value multiples because they are available to all capital providers (pre-interest), while P/E is an equity value multiple because net income is the residual belonging only to equity holders (post-interest).
Work full answer in app
GOBLIN100 #53Miller Buckfire/ 1st Round/ Restructuring
What are the 3 main valuation methods and how do they rank?
The three main valuation methods are trading comps, precedent transactions, and DCF. Precedents are usually highest because they include control premiums, trading comps are usually lower because they reflect minority public-market prices, and DCF has no fixed rank because it depends on assumptions.
Work full answer in app
GOBLIN100 #54OFFERGOBLIN
Intrinsic vs. relative valuation: which is better?
Intrinsic valuation, like a DCF, values the company based on its own cash flows. Relative valuation uses market or transaction multiples. Neither is always better; bankers triangulate using several methods.
Work full answer in app
GOBLIN100 #55Credit Suisse/ 1st Round
Tell me about the main valuation methods.
The three main valuation methods are DCF (discounts projected free cash flows to intrinsic value), comparable companies (applies trading multiples from similar public firms), and precedent transactions (applies multiples from prior M&A deals, typically yielding the highest values due to control premiums).
Work full answer in app
GOBLIN100 #56William Blair
Talk about a company and discuss some of its comparables.
Nike trades at roughly 20× EV/EBITDA, premiums to Adidas and Puma on superior margins and brand, while Lululemon and On Holding trade higher on faster growth; a DCF complements comps given Nike's unique scale and DTC trajectory.
Work full answer in app

What this level tests

DCF assumption sensitivity
WACC and discount rate logic
Enterprise value versus equity value
Working capital and free cash flow
Basic accretion/dilution math

This is the band that decides whether you progress to Superdays. Banks expect you to connect formulas to direction - not just recite WACC, but show what happens when WACC moves. Get fluent with the why behind every line.

How to know you are ready

You can state the valuation or EPS direction before explaining the math.
You can bridge DCF, WACC, EV, equity value, and working capital without losing the thread.
You can explain why the formula works, not just what the formula is.
You can recover if an interviewer flips one assumption.

Intermediate vs other question levels

Level	Example prompts	Ready when
Beginner	What does an investment bank do? What is enterprise value? Walk me through a DCF.	You can explain the concept cleanly before the first follow-up.
Intermediate	What happens if taxes fall in a DCF? How do AP days affect valuation?	You can connect formulas to valuation direction and name the trap.
Advanced	Calculate the LBO IRR. Why would a buyer not pay away all synergy value?	You can answer under pressure and defend the assumption set.

Keep practicing in the full bank.

These twelve samples are public. The full question bank and adaptive engine live in the practice app.

This intermediate investment banking interview question set pairs each prompt with a written direct answer, GOBLIN100 position, and bank context so candidates can compare question difficulty before moving into the full OFFERGOBLIN practice bank.

Run GOBLIN100

The ordered 100-question ramp. Definitions, linkage, and judgment, in order. Best when you want a clear path from where you are to interview-ready.

Start ramp

Practice in GOBLINMODE

Adaptive selection across the full bank. Pulls weak areas first and cycles questions you keep missing. Best for refining a working answer set.

Open GOBLINMODE

Frequently Asked Questions

What are intermediate investment banking interview questions?

How are intermediate IB questions different from beginner questions?

How should I answer DCF and WACC questions quickly?

Are accretion/dilution questions intermediate or advanced?

When should I move from intermediate to advanced IB questions?

What is the most common intermediate investment banking question that trips candidates up?

How do I know I am ready for advanced IB technicals?