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StreetCred guide

DCF Practice Case

A timed DCF practice case with 57 scored checks: free cash flow build, WACC calculation, terminal value by two methods, mid-year discounting, and sensitivity-ready outputs.

57

Scored checks

2

Terminal value methods

45 min

Timed rep

The short answer

A DCF practice case should make you build the whole chain — operating drivers to unlevered free cash flow, a WACC you calculate rather than assume, terminal value by both perpetuity growth and exit multiple, and discounted outputs that tie. StreetCred's DCF Case Study scores all of it across 57 checks in a 45-minute timed rep.

What this case makes you build

You value a consumer packaged-goods company from a supplied forecast and valuation assumptions. The scored modules walk the full valuation chain: P&L, balance sheet, and cash flow drivers (21 checks), unlevered free cash flow projections (13 checks), a WACC calculation you build from its components (6 checks), the headline DCF outputs (15 checks), and sensitivity tables (2 checks).

Terminal value is scored under both the perpetuity growth method and the exit multiple method, including the implied cross-checks between them — because the interviewer's favourite follow-up is whether your growth assumption implies a sane exit multiple, and the model should answer that before they ask.

Where candidates lose points

  • Mixing levered and unlevered logic — deducting interest on the way to 'unlevered' free cash flow.
  • Applying mid-year discounting to explicit-period cash flows but forgetting it, or double-counting it, on terminal value.
  • Building one terminal value method and pasting the other as a number. Both are checked for live formulas.
  • A WACC that is a typed assumption instead of a calculation. The component build is scored.
  • Outputs that do not trace: a per-share value that breaks when a driver assumption changes should not survive your own review, and it will not survive the sensitivity checks.

How scoring actually works

Every StreetCred case has an answer key that maps specific workbook cells to expected values. When you upload your .xlsx, the scorer opens it and compares each scored cell against the key within a numeric tolerance, so a rounding difference does not cost you points but a broken revenue build does.

Cells that should be calculated are also checked for a live formula. If you type the right number into an output cell instead of linking it through the model, the scorer flags it as a hardcode and tells you so in the report: correct value, zero credit for process.

Your process score weights formula quality at 70% and workbook hygiene, such as explicit number formats for currency, percentages, and multiples, at 30%. The report breaks results down by module and lists your top deductions, so you know exactly which schedule to rebuild next.

Frequently asked questions

Is DCF practice mainly theory or Excel work?

The theory fits on an index card; the marks are in the wiring. Candidates rarely fail DCF tests because they cannot define WACC — they fail because the terminal value does not discount correctly or the FCF build quietly deducts interest. That wiring is what the 57 checks in this case grade.

Should I use perpetuity growth or exit multiple for terminal value?

Build both and reconcile them — that is how the case is scored. Each method's output and the implied multiple cross-check are separate scored cells, mirroring the sanity check a real valuation reviewer performs.

Practice the task, not just the topic.

Start with the free diagnostic, build the workbook yourself, and use the score report to decide your next rep.

Start free diagnostic