Goldman Sachs Deck
Two companies in the same industry have identical EBITDA. Company A grows revenue 15% with 30% EBITDA margins; Company B grows 5% with 20% margins. Which deserves the higher EV/EBITDA and why?
Model answer
Company A. A multiple is shorthand for a DCF — it compresses expectations of future cash flow into one number — so anything that raises future free cash flow relative to today's EBITDA raises the…
The full, human-reviewed answer is in the bank.
Sign up free and Daily 10 serves you 10 questions a day from all 1,500+ — or go Pro for unlimited reps.
More from Goldman Sachs Deck
- When was Goldman Sachs founded, by whom, and what was its original business?
- Goldman Sachs was a private partnership for 130 years. When did it go public, and why does the partnership legacy still matter in interviews?
- Walk me through what happened to Goldman Sachs in the 2008 financial crisis — the settled facts an interviewer expects you to know.
- At a structural level, how does Goldman Sachs make money? Describe the segment logic a candidate should understand.
- What is Goldman Sachs best known for competitively, and where is it structurally different from universal-bank peers?
- What is the first of Goldman Sachs's Business Principles, and how should you use the principles in an interview?