->

⑳ QUESTIONS FOR
VALUATIONS

INTERVIEW

(with tips)
① walk me
through a DCF
model.

-
Ensure this is well
prepared.
-
It is one of the most

finance
asked questions in
Interviews.
② What are the different
approaches to value a

company?
-
Explain different approaches

in detail.

- Ensure you don't confuse

between and
approaches
methods of valuation
-
③Explain Risk free Rate.

keep your answer

crisp
and without
Jargons.
Risk
prepare negative
-

on

Free Rates also

④ Explain Equity Risk premium

Try to explain link between

the markets.
fear in
pand
-

Good, if you can explain

to
multiple approaches
Calculate ERP
 is
⑤
What
Beta?
- surround your answer around
risk measure
& not
being
a return measure.

Beta of
-
warn how to calculate

unlisted company.
to
methods
-
learn different
Calculate Beta.
 ⑥ What is cost of
Equity?
-
Explain CAPM in detail.

provide Insights on marginal

Investors.
confuse between
-
Don't
Return
Equity a cost of
Equity.
What is free
⑦ cash flow to the

firm?
terms.
in can
-
first, explain
-
then, explain the formula

FCAN=EBITX (1-7) +
Non cash

charges
+

a in
working capital
-

capex
⑧ What is free cash flow to Equity?
how much cash
-
ACFE
m easures

firm can return to its shareholders

a

model is useful whdebt

-

fcfE
volatile in company.
⑭ a

I-
Netancome +

DOA + kinwc

Borrowings + Net
+ capex
⑨ What is Dividend Discount model?
-
Based on Assumption that fair

value of a stock is present value

-

of all are dividends.

its
-

Notto be
used in emerging
yet
companies.

see
did

value upon
ends
-

-
⑩ Difference between Enterprise
value & value.
Equity
Enterprise Value MK value of
=

operating Asset
->

value value of
market
Equity =

equity
Shareholder's
-

Equity
value Enterprise.
=
Net
value debt
⑪Difference between trailing PE

& Forward PE?

historical tas
-

Trailing PE uses

PE Forecasted EPS
-
Forward uses

include to
-
ensure to who
use what?
-
⑫ most common multiples used
in valuation?
-

IV/EBITDA
-
Price / cash flows from operations
-
E/ sales

PEG Ratio
-
Price to Book value

PERatio.
⑬ can terminal value be Negative?
-& NO.

-
oil, Gas,
Yes it its mining
Busines

-
No, if assumption
is
Going
concern.
⑭ when not to use
Dof?
- when firm has unsteady
-->

cashflows.
and unpredictable
--

-
when debt & we serves a

completely different role.

Llike in Banks)
⑮
How would you value a

MANGO Tree?
of valuation
stick to 3 principles
-
cash flows

cash flows
-
Growth in
-
riskiness of
the
growth
⑯ Difference between
Intrinsic & market value?

You should be flawless

this
while answering
well.
-

prep really
⑰ Recent MOA/IPOS

mo
-
Be aware about big
3 Ipo happened in last 6

months.

- not required expert opinion

but basic awareness.
⑱ How to value companies
withoutcash flows (preRevane)

-
multiple approach.

card method.
-
score
⑲ when does requirements of
valuation trigger?
-
m&A

statutory requirement
-
EsoP calculation

- suomoto
20.
->
How do all
you know this?

Because, I
diligently follow

PARTH VERMA On linked

And ->
And VALUATION SCHOOL"
follow" THE
channel on
;But why?
-
To learn financial modelling
&
in most easy way
Far free.

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