Category
Technicals
Walk Me Through a DCF
Walk me through a DCF is the most common IB interview question. Here's the clean five-step answer interviewers want, with formulas and follow-ups.
Jun 22, 2026 · 8 min readTechnicalsWalk Me Through an LBO
Walk me through an LBO is a core IB and PE interview question. Here's the clean step-by-step answer, the three returns drivers, and the follow-ups.
Jun 21, 2026 · 8 min readTechnicalsHow the Three Financial Statements Link Together
The three financial statements link through net income, ending cash, and depreciation. Here's how they connect, plus the classic depreciation question.
Jun 20, 2026 · 9 min readTechnicalsTerminal Value Explained
Terminal value captures all DCF cash flows beyond the forecast. The two methods, the formulas, how to cross-check them, and the interview traps to avoid.
Jun 16, 2026 · 7 min readTechnicalsUnlevered vs Levered Free Cash Flow
Unlevered free cash flow is cash to all investors before debt; levered FCF is what's left for equity. The formulas, the difference, and why DCFs use UFCF.
Jun 15, 2026 · 7 min readTechnicalsWACC Explained: Formula, Inputs & Interview Use
WACC is the discount rate in every DCF. Get the WACC formula, how to estimate cost of equity via CAPM and cost of debt, plus interview follow-ups.
Jun 14, 2026 · 7 min readTechnicalsEnterprise Value vs Equity Value Explained
Enterprise value vs equity value is a top IB interview question. Get the bridge formula, which multiples pair with each, and the why-X-moves-EV follow-ups.
Jun 13, 2026 · 7 min readTechnicalsPaper LBO: How to Solve One in an Interview
How to solve a paper LBO in 5 to 10 minutes with no Excel: assumptions, sources and uses, projections, exit, and the IRR and MOIC mental math shortcuts.
Jun 12, 2026 · 8 min readTechnicalsDCF Interview Questions and Answers
The DCF interview questions bankers actually ask, from why unlevered FCF to terminal value methods and sensitivities, each with a tight model answer.
Jun 9, 2026 · 8 min readTechnicalsAccretion Dilution Analysis: The EPS Test in M&A
Accretion dilution analysis measures whether an acquisition raises or lowers the buyer's EPS. Get the P/E rule, financing test, and a worked example.
Jun 6, 2026 · 8 min readTechnicalsHow to Calculate EBITDA: Two Formulas & Examples
How to calculate EBITDA two ways, from net income up and from EBIT plus D&A, why bankers use it, its limitations, adjusted EBITDA, and EBITDA vs cash flow.
Jun 5, 2026 · 8 min readTechnicalsMOIC vs IRR: Definitions, Formulas & PE Use
MOIC measures how many times you multiplied your money; IRR annualizes it for time. Get both formulas, a worked LBO example, and the MOIC-to-IRR shortcut.
Jun 4, 2026 · 7 min readTechnicalsNOPAT Explained: Formula, FCF & ROIC Use
NOPAT is operating profit after tax with no leverage: EBIT times (1 minus the tax rate). Get the formula, a worked example, and how it feeds FCF and ROIC.
Jun 3, 2026 · 6 min readTechnicalsCost of Equity and Cost of Debt Explained
Cost of equity comes from CAPM, cost of debt from the after-tax yield on borrowing. See both formulas, a worked example, and how they feed WACC.
Jun 2, 2026 · 8 min readTechnicalsGoodwill and Purchase Accounting in M&A
Goodwill is the premium paid above the fair value of net identifiable assets. See how it's created, the purchase accounting steps, and impairment under US GAAP.
Jun 1, 2026 · 7 min readTechnicalsComparable Company Analysis: Trading Comps Guide
Comparable company analysis values a target off peer multiples. Get the trading comps steps, EV/EBITDA vs P/E, and how comps stack up against a DCF.
May 31, 2026 · 7 min readTechnicalsEV/EBITDA & Valuation Multiples Explained
EV/EBITDA is the most-used valuation multiple in IB. Get the formula, why EV pairs with EBITDA, equity vs enterprise multiples, and typical ranges by context.
May 30, 2026 · 7 min readTechnicalsPrecedent Transactions Analysis: Steps & Use
Precedent transactions analysis values a company off past M&A deals. Get the steps, the multiples, the control premium, and how it differs from comps.
May 29, 2026 · 7 min readTechnicalsCoverage Ratio vs Leverage Ratio Explained
Coverage ratio vs leverage ratio: leverage sizes the debt (Debt/EBITDA), coverage tests if cash flow services it. Formulas, thresholds, and the interview angle.
May 28, 2026 · 7 min readTechnicalsCash Sweep in an LBO: How It Deleverages Debt
A cash sweep applies excess free cash flow to prepay LBO debt early. See how it accelerates deleveraging, lifts equity returns, and gets modeled.
May 3, 2026 · 7 min read