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Question 1 of 10 · DCF Valuation & WACC
Question 1 of 10
DCF Valuation & WACC
What is the fundamental concept behind a DCF valuation?
Companies with higher revenue are always more valuable than those with lower revenue
A dollar today is worth more than a dollar in the future, so future cash flows must be discounted to present value
A company's value equals its current year earnings multiplied by an industry average multiple
Companies should be valued based on their book value of assets
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