Checkpoint 1 · lesson
Forecasts, WACC, and terminal value
Prereq
No blocking prerequisite is attached; start by defining the terms in the prompt.
Core
DCF and WACC Forecast free cash flow, terminal value, discount rates, and sensitivity framing.
Apply
Use this lesson to answer one interview prompt by stating the concept, naming the dependency, and then applying it to Valuation / DCF without changing the question into unsupported numbers.
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.
Resources
- EditorialDamodaran — cost of capital data