A question that may seem simple at first glance, but one that can challenge even the most prepared candidates during a finance interview. On Monday, February 24, we had the opportunity to tackle it in a practical way during a workshop with Lorenzo Giacomelli, founder of LGEducation srl.
The session turned into a truly interactive workshop, with a practical focus on a symbolic Made in Italy company, De’ Longhi. Thanks to Lorenzo’s guidance, we started from the basics, working on the reclassification of the balance sheet and the income statement to fully understand the company’s financial structure.
The core of the workshop was the calculation of the company’s value through the Discounted Cash Flow, DCF, model, an essential tool for anyone aiming to excel in the world of finance. We analyzed the WACC, Weighted Average Cost of Capital, exploring its impact on company valuation and on the risk perceived by investors, and we focused on specific metrics such as the interest coverage ratio, which is fundamental in assessing a company’s financial strength.
A special thanks also goes to Francesca Pampurini, who followed the event with us and made a valuable contribution to its realization.
The workshop was a complete learning experience, rich in practical content and moments of direct discussion, with Lorenzo answering participants’ questions in a clear and engaging way.
🔍 And you? Can you walk me through a DCF?🚀
