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How do you answer "Walk me through a DCF"?

This seems to be a common interview question. How detailed should the explanation be and what are interviewers looking for?

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Denis
Coach
on Aug 12, 2026
Mid-Cap Private Equity | Ex-H.I.G. Capital | Ex-Goldman Sachs Investment Banker NYC | Ex-Bain & Co. | MBA Chicago Booth

Standard question. Google 400 questions and the detailed BIWS (Break into Wall Street guides) - you will see verbatim answer possibilities in there. Also, make sure you truly understand a DCF. If you do, you will be able to answer this question, even slightly changed versions of this...