Quel niveau de détail pour les réponses des questions techniques

#1 · 3 octobre 2024, 12:21

Citation de Louis.A le 3 octobre 2024, 12:21
Bonjour à tous, j'espère que vous allez bien,

Je m'entraîne actuellement pour les entretiens de summer internship et j'aimerais avoir quelques conseils.

Lorsqu'une question technique est posée, quel niveau de détail est attendu ?

Par exemple, pour la question suivante: Walk me through a DCF analysis

Ma réponse est la suivante:

To conduct a DCF analysis, you start by projecting the company’s Free Cash Flows (FCF) for a certain period, typically 5 to 10 years. Free Cash Flow is calculated by taking the company’s Net Operating Profit After Taxes (NOPAT), which is derived from Earnings Before Interest and Taxes (EBIT) minus taxes. To this, you add back non-cash expenses such as depreciation and amortization, as these do not involve actual cash outflows. Then, you account for changes in working capital, which reflect the net change in current assets and current liabilities. Finally, you subtract capital expenditures, which are the funds used to purchase or maintain fixed assets.

After projecting the Free Cash Flows for the forecast period, the next step is to calculate the Terminal Value, representing the value of the company’s cash flows beyond the forecast period into perpetuity. There are two common methods for calculating Terminal Value: the Perpetuity Growth Method (also known as the Gordon Growth Model) and the Exit Multiple Method. The Perpetuity Growth Method assumes that Free Cash Flow will continue to grow at a constant rate indefinitely. It is calculated by taking the Free Cash Flow in the final forecast year, multiplying it by one plus the perpetual growth rate, and then dividing by the discount rate minus the perpetual growth rate. The Exit Multiple Method applies a valuation multiple (such as EV/EBITDA) to a financial metric (e.g., EBITDA) in the final forecast year to estimate the Terminal Value.

Once you have projected the Free Cash Flows and calculated the Terminal Value, these values need to be discounted back to their present value. The discount rate used is typically the company’s Weighted Average Cost of Capital (WACC), which accounts for the cost of equity and the cost of debt. The present value of each Free Cash Flow is calculated by dividing the Free Cash Flow by one plus the WACC raised to the power of the year in the forecast period. Similarly, the present value of the Terminal Value is calculated by dividing the Terminal Value by one plus the WACC raised to the power of the final year of the forecast period.

The next step is to sum the present values of all projected Free Cash Flows and the present value of the Terminal Value to get the Enterprise Value (EV). To find the Equity Value, you adjust the Enterprise Value by subtracting net debt, which is the total debt minus cash and cash equivalents. Finally, to determine the intrinsic value per share, you divide the Equity Value by the number of outstanding shares.

Est-ce trop précis et développé ?

Bonjour à tous, j'espère que vous allez bien,

Je m'entraîne actuellement pour les entretiens de summer internship et j'aimerais avoir quelques conseils.

Lorsqu'une question technique est posée, quel niveau de détail est attendu ?

Par exemple, pour la question suivante: Walk me through a DCF analysis

Ma réponse est la suivante:

To conduct a DCF analysis, you start by projecting the company’s Free Cash Flows (FCF) for a certain period, typically 5 to 10 years. Free Cash Flow is calculated by taking the company’s Net Operating Profit After Taxes (NOPAT), which is derived from Earnings Before Interest and Taxes (EBIT) minus taxes. To this, you add back non-cash expenses such as depreciation and amortization, as these do not involve actual cash outflows. Then, you account for changes in working capital, which reflect the net change in current assets and current liabilities. Finally, you subtract capital expenditures, which are the funds used to purchase or maintain fixed assets.

After projecting the Free Cash Flows for the forecast period, the next step is to calculate the Terminal Value, representing the value of the company’s cash flows beyond the forecast period into perpetuity. There are two common methods for calculating Terminal Value: the Perpetuity Growth Method (also known as the Gordon Growth Model) and the Exit Multiple Method. The Perpetuity Growth Method assumes that Free Cash Flow will continue to grow at a constant rate indefinitely. It is calculated by taking the Free Cash Flow in the final forecast year, multiplying it by one plus the perpetual growth rate, and then dividing by the discount rate minus the perpetual growth rate. The Exit Multiple Method applies a valuation multiple (such as EV/EBITDA) to a financial metric (e.g., EBITDA) in the final forecast year to estimate the Terminal Value.

Once you have projected the Free Cash Flows and calculated the Terminal Value, these values need to be discounted back to their present value. The discount rate used is typically the company’s Weighted Average Cost of Capital (WACC), which accounts for the cost of equity and the cost of debt. The present value of each Free Cash Flow is calculated by dividing the Free Cash Flow by one plus the WACC raised to the power of the year in the forecast period. Similarly, the present value of the Terminal Value is calculated by dividing the Terminal Value by one plus the WACC raised to the power of the final year of the forecast period.

The next step is to sum the present values of all projected Free Cash Flows and the present value of the Terminal Value to get the Enterprise Value (EV). To find the Equity Value, you adjust the Enterprise Value by subtracting net debt, which is the total debt minus cash and cash equivalents. Finally, to determine the intrinsic value per share, you divide the Equity Value by the number of outstanding shares.

Est-ce trop précis et développé ?

#2 · 4 octobre 2024, 16:42

Elle est trop longue ta réponse. Essaie d'être concis et l'interviewer te posera des questions sur le WACC, TV etc par la suite

Ca rend l'entretien dynamique et ça évite que tu fasses un monologue

#3 · 7 octobre 2024, 10:50

Merci beaucoup !

#4 · 8 octobre 2024, 00:03

Citation de Leandro PEREIRA DIAS le 8 octobre 2024, 00:03

Citation de L3933855 le octobre 3, 2024, 12:21

To conduct a DCF analysis, you start by projecting the company’s Free Cash Flows (FCF) for a certain period, typically 5 to 10 years. Free Cash Flow is calculated by taking the company’s Net Operating Profit After Taxes (NOPAT), which is derived from Earnings Before Interest and Taxes (EBIT) minus taxes. To this, you add back non-cash expenses such as depreciation and amortization, as these do not involve actual cash outflows. Then, you account for changes in working capital, ~~which reflect the net change in current assets and current liabilities~~. ~~Finally,~~ and you subtract capital expenditures~~, which are the funds used to purchase or maintain fixed assets~~.

After projecting the Free Cash Flows for the forecast period, the next step is to calculate the Terminal Value, representing the value of the company’s cash flows beyond the forecast period into perpetuity. There are two common methods for calculating Terminal Value: the Perpetuity Growth Method (~~also known as the Gordon Growth Model~~) and the Exit Multiple Method. ~~The Perpetuity Growth Method assumes that Free Cash Flow will continue to grow at a constant rate indefinitely.~~ It is calculated by taking the Free Cash Flow in the final forecast year, multiplying it by one plus the perpetual growth rate, and then dividing by the ~~discount rate~~ WACC minus the perpetual growth rate. The Exit Multiple Method applies a valuation multiple (such as EV/EBITDA) to a financial metric (e.g., EBITDA) in the final forecast year to estimate the Terminal Value.

Once you have projected the Free Cash Flows and calculated the Terminal Value, these values need to be discounted back to their present value. The discount rate used is typically the company’s Weighted Average Cost of Capital (WACC), ~~which accounts for the cost of equity and the cost of debt.~~ The present value of each Free Cash Flow is calculated by dividing the Free Cash Flow by one plus the WACC raised to the power of the year in the forecast period. Similarly, the present value of the Terminal Value is calculated by dividing the Terminal Value by one plus the WACC raised to the power of the final year of the forecast period.

The next step is to sum the present values of all projected Free Cash Flows and the present value of the Terminal Value to get the Enterprise Value (EV). To find the Equity Value, you adjust the Enterprise Value by subtracting net debt, which is the total debt minus cash and cash equivalents. Finally, to determine the intrinsic value per share, you divide the Equity Value by the number of outstanding shares.

Est-ce trop précis et développé ?

Cf la citation; de mon point de vue, c'est à peu près le type de précision qu'un interviewer attend. La règle générale c'est ne pas aller trop deep mais évoquer les termes clés, inutile de donner la définition du WACC, etc. Comme le dit @louis-a cela te permettra de répondre à des questions et ajouter du dynamisme à l'entretien.

Diasbeard

Citation de L3933855 le octobre 3, 2024, 12:21

To conduct a DCF analysis, you start by projecting the company’s Free Cash Flows (FCF) for a certain period, typically 5 to 10 years. Free Cash Flow is calculated by taking the company’s Net Operating Profit After Taxes (NOPAT), which is derived from Earnings Before Interest and Taxes (EBIT) minus taxes. To this, you add back non-cash expenses such as depreciation and amortization, as these do not involve actual cash outflows. Then, you account for changes in working capital, ~~which reflect the net change in current assets and current liabilities~~. ~~Finally,~~ and you subtract capital expenditures~~, which are the funds used to purchase or maintain fixed assets~~.

After projecting the Free Cash Flows for the forecast period, the next step is to calculate the Terminal Value, representing the value of the company’s cash flows beyond the forecast period into perpetuity. There are two common methods for calculating Terminal Value: the Perpetuity Growth Method (~~also known as the Gordon Growth Model~~) and the Exit Multiple Method. ~~The Perpetuity Growth Method assumes that Free Cash Flow will continue to grow at a constant rate indefinitely.~~ It is calculated by taking the Free Cash Flow in the final forecast year, multiplying it by one plus the perpetual growth rate, and then dividing by the ~~discount rate~~ WACC minus the perpetual growth rate. The Exit Multiple Method applies a valuation multiple (such as EV/EBITDA) to a financial metric (e.g., EBITDA) in the final forecast year to estimate the Terminal Value.

Once you have projected the Free Cash Flows and calculated the Terminal Value, these values need to be discounted back to their present value. The discount rate used is typically the company’s Weighted Average Cost of Capital (WACC), ~~which accounts for the cost of equity and the cost of debt.~~ The present value of each Free Cash Flow is calculated by dividing the Free Cash Flow by one plus the WACC raised to the power of the year in the forecast period. Similarly, the present value of the Terminal Value is calculated by dividing the Terminal Value by one plus the WACC raised to the power of the final year of the forecast period.

The next step is to sum the present values of all projected Free Cash Flows and the present value of the Terminal Value to get the Enterprise Value (EV). To find the Equity Value, you adjust the Enterprise Value by subtracting net debt, which is the total debt minus cash and cash equivalents. Finally, to determine the intrinsic value per share, you divide the Equity Value by the number of outstanding shares.

Est-ce trop précis et développé ?

Cf la citation; de mon point de vue, c'est à peu près le type de précision qu'un interviewer attend. La règle générale c'est ne pas aller trop deep mais évoquer les termes clés, inutile de donner la définition du WACC, etc. Comme le dit @louis-a cela te permettra de répondre à des questions et ajouter du dynamisme à l'entretien.

Diasbeard

#5 · 8 octobre 2024, 15:09

Merci beaucoup pour ton aide Diasbeard !

#6 · 19 décembre 2024, 10:58

Ça me paraît bien mais trop scolaire ça fait du par cœur

faut mieux montrer je pense que t’as compris pourquoi tu fais tout ça

#7 · 25 mars 2025, 17:16

Hello,

Lors de tes entretiens, essaye de donner des réponses synthétisées et claires. Si ils veulent creuser, c'est eux qui te demanderont plus de détails. Parfois, en voulant donner trop de détails, on perd en clarté et notre réponse peut devenir un "monologue". L'entretien devient donc plus mou et ca peut dégrader le ressenti des interviewers. Essaye de donner les infos les plus importantes et après de tourner l'entretien comme un échange. Dans cet échange, tu pourras donner plus de détails et leur montrer que tu comprends vraiment un concept.

Découvrez notre formation en M&A

Forum

Forum

Quel niveau de détail pour les réponses des questions techniques

Inscrivez-vous

à notre Newsletter

Nous suivre

A propos

Nos forums

Liens utiles

Découvrez notre formation en M&A