Question:

Walk me through how to get from Revenue to Unlevered Free Cash Flow in your DCF projections

Answer hidden.

Answer:

First, Subtract COGS and Operating Expenses from Revenue to get to Operating Income (EBIT)

Then, Multiply EBIT * (1 - Tax Rate), add back D&A and all non-cash expenses, and adjust for changes in net working capital.

Finally, subtract Capital Expenditures to give you Unlevered Free Cash Flow

Want access to more answers like this?

With an EBITDOG membership, you’ll get answers to hundreds of interview questions sourced from the top investment banks across Wall Street.

A woman holding a phone accessing EBITDOG's study guide with a laptop in front of her also showing EBITDOG's study guide

Want access to more answers?

With an EBITDOG membership, you’ll get answers to hundreds of interview questions sourced from the top investment banks across Wall Street.

A woman holding a phone accessing EBITDOG's study guide with a laptop in front of her also showing EBITDOG's study guide

Your Wall Street job is just a click away 💸

You have the GPA, the internships, and the resume.

We have the answers to the questions they're going to ask.

Join EBITDOG and change the trajectory of your career forever.

Pro

  • Access to EBITDOG database
  • Private EBITDOG community (coming soon)
$8.25
per month billed yearly
Join EBITDOG

Pro

  • Access to EBITDOG database
  • Private EBITDOG community (coming soon)
$15.00
per month
Join EBITDOG