Macquarie Group

  www.macquarie.com
  www.macquarie.com

Interview Question

Investment Banking Analyst Interview(Student Candidate)

How would you value a casino?

Answer

Interview Answer

1 Answer

0

I've gotten a lot of open ended valuation questions like this.

Before doing anything, you say to the interviewer: I would value it two ways - intrinsically (DCF) and according to the market (Comps and Precedent Transactions)

DCF - you pretty much do a straight-shoot DCF; however make sure to state that you will have non-recurring one-time expenses that you might have to adjust for. Also, you would also have to take into account different royalties that are paid out to the managing board.

SC Trojans on Oct 23, 2011

Add Answers or Comments

To comment on this Question, Sign In with Facebook or Sign Up