Basic:
DCF:
Walk through DCF
Terminal value methods (gordon growth, and multiples method) and how to
discount cash flows
Know WACC formula
CAPM formula
What does the WACC tell us
Formula for unlevered free cash flow
Valuation: Walk through three common methods (comparables, precedents, DCF)
Common multiples (EV/EBITDA, EV/Sales, P/E ratio),
what does a p/e ratio tell us
differences between p/e ratio and ev/ebitda ratios
Enterprise Value/Equity Value: Know formula for enterprise value, why you
add/subtract each item in EV formula, how to get from enterprise value to
price per share
Accounting: Walk through all three financial statements mentioning common
line items, how changes in depreciation flow through three statements, how
statements are linked
M&A: Know a recent M&A transaction and be able to discuss at a high level
w/multiples and metrics if possible
Advanced:
M&A: Walk through a merger model and understand key balance sheet
adjustment in an M&A transaction, understand differences and reasons for
financing a deal through cash, debt, or stock and how it ultimately affects
accretion/dilution
LBO: Walk through an LBO and understand how common variables affect IRR
(entry multiple, exit multiple, margin expansion, leverage levels etc.)
Know sources and uses, debt paydown schedule, dividence recap etc.