Learn / DCF and WACC / Concept lab

DCF and WACC

IBValuation / DCFmastery builds after your first drill

Forecast free cash flow, terminal value, discount rates, and sensitivity framing.

DCF and WACC Flowcanvas

Drawing diagram…

Lab notes

Prerequisite mini-map

No prereq gate

1
current lab
DCF and WACC

Core

Forecast free cash flow, terminal value, discount rates, and sensitivity framing.

Free cash flows and terminal value are discounted at WACC to enterprise value.

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Linked questions

Question 4: If I’m working with a public company in a DCF, how do I calculate its per-share val…
Question 13: How would you adjust the 3 financial statements for a distressed company when you’…
Question 19: How do you select Comparable Companies / Precedent Transactions?
Question 21: What about WACC – will it be higher for a $5 billion or $500 million company?

Warren

WACC is an opportunity cost, not a negotiating position. Unlever the beta, then relever for the target structure — mixing levered and unlevered figures is the classic slip.