Wall Street Prep

Leveraged Buyout (LBO) Modeling: 1 Hour Practice Test

The LBO Modeling Test is the most common type of modeling test an interviewee will be given during the private equity recruiting cycle. The LBO modeling test we'll go through here reflects the level of ... Read More

Cash-Free Debt-Free: Why It's Used and Impact on Enterprise Valuation

Cash-free debt-free simply means that when an acquirer buys another company, the transaction will be structured such that the buyer will not assume any of the debt on the seller's balance sheet, nor will ... Read More

LBO Modeling Test: Real Example

The LBO Modeling Test refers to a common interview exercise during the later stages of the private equity recruiting process, which usually works as follows: The interviewee will usually receive a "prompt" – a ... Read More

Funds from operations: Formula, Definition and Examples

FFO is a a measure of cash generated by a Real Estate Investment Trust (REIT). In fact, the measurement itself was developed by NAREIT, the REIT lobby, in an attempt to reconcile accounting (GAAP) ... Read More

Real Estate Investment Firms: Who they are and what they do

If you've ever purchased a single family home, you are likely already familiar with the parties involved in real estate: You have the seller (usually just a private individual like yourself), the sales agents, ... Read More

Cap Rate in Real Estate: Formula and Examples

The capitalization rate (cap rate), along with net operating income are the most important metrics in real estate.  Together, they are used to value real estate properties. The cap rate measures the a real ... Read More

Net Operating Income (NOI): Formula, Definition and Examples

Net operating income (NOI) is the most important profit measure in real estate.  It strives to isolate to core operating profits of real estate assets, so as to avoid muddying the waters with non ... Read More

Real Estate Private Equity: Complete Guide to Breaking Into the Industry

Real Estate Private Equity (REPE) or Private Equity Real Estate (PERE) refers to firms that raise capital to acquire, develop, operate, improve, and sell buildings in order to generate returns for their investors. If ... Read More

The Ultimate Guide to REITs

Real estate investment trusts ("REITS") are companies that own real estate portfolios across a range of property sectors such as offices, retail, apartments, hospitals and hotels. REITs invest in the properties themselves, generating income ... Read More

REIT Valuation: The 4 Most Common Approaches Used in Practice

REIT valuation is commonly performed by analysts using the following 4 approaches Net asset value (“NAV”) Discounted cash flow (“DCF”) Dividend discount model (“DDM”) Multiples and cap rates Companies operating in industries like technology, ... Read More

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The Wall Street Prep Quicklesson Series

7 Free Financial Modeling Lessons

Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts.