JP Morgan DCF Model Part 2 & Sensitivity Analysis Solutions | Investment Banking Virtual Internship

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This is part 2 of building the DCF model and completing the sensitivity analysis for the JP Morgan Investment Banking Virtual Internship. The focus is to go over a couple formulas for calculating the free cash flows, perpetuity growth portion, and exit EBITDA multiple.

Using the perpetuity growth method I calculated the EV to be $803M and $988.2M using the exit EBITDA multiple method.

Performing a sensitivity analysis allows us to see a number of possible values the EV can take based on changes to WACC and growth rate. Valuation is not a precise science so the range is crucial.

The second part of the video is summarising our findings in the slide deck.

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