What are the top 5 questions you would ask management if you were building a DCF?

Published On - January 4, 2022

Josh Investment Banking

1. How does your revenue model work, what are your growth drivers for revenue and how does revenue growth look going forward?
2. What are your gross margins and do you expect improvement?
3. How is SG&A driven (eg % change vs. % of sales) and how does that look going forward
4. Who are your competitors and how are you positioned relative to them?
   • Knowing the competitive landscape and how the company is positioned will help you better forecast revenue and costs
   • This can help with doing beta comps and finding an exit multiple for terminal value
5. How much capex are you planning to spend in the next 5 years?