An investment banking case study is a timed interview exercise where you value a company and defend a recommendation. Most center on valuation using three methods (DCF, trading comps, precedent transactions), a "pitch this company" positioning, or a merger model. Interviewers judge structured thinking, valuation fundamentals, and how clearly you communicate under pressure.
Key takeaways
- IB case studies test valuation and judgment, not memorization. You build a defensible number, then argue what to do with it.
- The three core valuation methods are discounted cash flow (DCF), trading comparables, and precedent transactions. Strong candidates run all three and show a range, not a single figure.
- Formats vary from a take-home valuation model to a live "pitch this company" case and, at superdays, a group case with a short presentation.
- What gets scored: structured thinking, correct valuation fundamentals, commercial awareness, and clear communication.
- The IB case differs from the private equity LBO case, which is built around returns to an equity sponsor rather than a valuation range or advisory pitch.
What an investment banking case study actually is
A case study drops you into a realistic deal scenario and asks you to reach a conclusion. You might value a company, decide whether an acquisition makes sense, or argue why a client should hire your bank. The point is not to produce a perfect model. It is to show you can structure an ambiguous problem, apply valuation logic correctly, and communicate a recommendation a managing director could stand behind in front of a client.
Banks use case studies as a filter late in the process, often at the superday or final round, because they separate candidates who memorized formulas from candidates who understand what the numbers mean. This is a different skill from the technical Q&A that dominates first rounds, and it sits alongside the credentials and licensing covered in our guide to the investment banking license and exams.
Common case study formats
The format depends on the bank, the level, and whether the exercise is take-home or live. Most fall into one of these buckets.
| Format | What you do | Where it shows up | Time |
|---|---|---|---|
| Valuation case | Value a company using DCF, comps, and precedents, then give a range | Take-home or live at superday | Hours (take-home) or 45 to 60 min (live) |
| Pitch / recommendation | Argue why a company is a buy, sell, or attractive client, backed by data | Live interview or short deck | 45 to 60 min prep, ~10 min present |
| Merger model | Build a simple accretion/dilution analysis and recommend on the deal | Modeling test, associate level | 1 to 3 hours |
| Group case | Analyze a prompt as a team, then present | Superday assessment center | 45 to 60 min prep, ~10 min present |
Live cases give you 45 to 60 minutes to prepare and roughly 10 minutes to present, followed by questions. On-the-spot group cases weight teamwork and communication more heavily than modeling depth, since there is no time to build anything elaborate.
The three valuation methods
Valuation is the backbone of almost every IB case. Interviewers expect you to know all three core methods, when each applies, and why you would not rely on any single one. In practice, bankers run all three and lay the ranges side by side on a football field chart.
| Method | How it values | When it fits best | Watch-outs |
|---|---|---|---|
| Discounted cash flow (DCF) | Projects unlevered free cash flows and discounts them at WACC to a present value | Companies with predictable cash flows, or few good comparables | Highly sensitive to growth and discount-rate assumptions |
| Trading comparables | Applies multiples (EV/EBITDA, P/E) from similar public companies to the target | A liquid set of true peers exists; you want a current market read | Reflects market mood; hard to find clean comps |
| Precedent transactions | Applies multiples paid in past M&A deals for similar companies | Valuing control, as in an acquisition; includes a control premium | Data can be stale; deal-specific factors distort multiples |
A DCF asks what the business is intrinsically worth on its own cash flows. Comps ask what the market pays for similar businesses right now. Precedents ask what acquirers have actually paid for control. Each answers a different question, which is why a credible case shows a range rather than one point estimate.
What interviewers are assessing
Beyond a right answer, evaluators watch how you get there. The scored dimensions are consistent across banks.
- Structured thinking. Do you break the prompt into a clear framework before diving into numbers, or jump straight to a calculation?
- Valuation fundamentals. Are your methods, multiples, and assumptions correct and internally consistent?
- Commercial awareness. Do you connect the analysis to a real business decision, including risks, synergies, and market context?
- Communication. Can you state a recommendation up front and defend your assumptions without hedging?
A common failure is burying the answer. State your recommendation first, then walk through the analysis that supports it. Ignoring qualitative factors, skipping alternative scenarios, or losing the thread back to the original question all cost points.
How the IB case differs from the PE case
Candidates often prep for both, but the exercises reward different instincts. The investment banking case is usually an advisory or valuation problem: what is this company worth, and what should the client do? The private equity LBO case is an ownership problem built around a leveraged buyout model, where you buy a company with debt, improve it, and measure the return (IRR and multiple of money) to the equity sponsor at exit.
| Dimension | IB case study | PE / LBO case study |
|---|---|---|
| Core question | What is it worth, and what should the client do? | Can we buy this, improve it, and hit a target return? |
| Primary model | DCF, comps, precedents | LBO model |
| Output | Valuation range and advisory recommendation | IRR, multiple of money, buy/pass decision |
| Perspective | Advisor to the client | Owner deploying capital |
Knowing which lens the interviewer wants matters. Bringing an LBO-heavy, returns-first mindset to a pure valuation case signals you have not understood the exercise.
How to prepare
Preparation is about reps, not reading. Work through full cases end to end, out loud, and time yourself so the live format holds no surprises.
- Rosenbaum & Pearl, Investment Banking: Valuation, LBOs, M&A, and IPOs. The standard reference for how the methods and models actually work.
- Wall Street Prep and Breaking Into Wall Street (BIWS). Structured modeling courses plus practice cases that mirror the real exercises.
- Mergers & Inquisitions (M&I). Deep free articles on interview technique, common questions, and how cases are scored.
- Practice presenting, not just modeling. Half the grade is delivery. Rehearse stating a recommendation in the first sentence and defending it under questioning.
If you are targeting bulge-bracket seats, pair case prep with a realistic read on the money and the path, starting with our breakdown of investment banking analyst salary in NYC and the broader career and compensation hub.
The candidates who clear the case round are rarely the fastest modelers. They are the ones who structure the problem cleanly, get the valuation fundamentals right, and say plainly what they would do and why.
Frequently asked questions
How long do you get for a live investment banking case study?
Live investment banking cases give you 45 to 60 minutes to prepare and roughly 10 minutes to present, followed by questions. Take-home valuation cases can run for hours instead. Group cases at superday assessment centers also allow 45 to 60 minutes of prep and about 10 minutes to present, but weight teamwork and communication more heavily than modeling depth.
What are the three valuation methods used in an IB case study?
The three core valuation methods are discounted cash flow (DCF), trading comparables, and precedent transactions. DCF projects unlevered free cash flows and discounts them at WACC to find intrinsic value. Trading comps apply multiples from similar public companies. Precedent transactions apply multiples paid in past M&A deals and capture a control premium. Strong candidates run all three and lay the ranges side by side rather than relying on one figure.
How is an investment banking case study different from a private equity case?
An investment banking case is usually an advisory or valuation problem asking what a company is worth and what the client should do, built on DCF, comps, and precedents. A private equity LBO case is an ownership problem built around a leveraged buyout model, where you buy a company with debt, improve it, and measure the return through IRR and multiple of money to the equity sponsor at exit.
What do interviewers score in an investment banking case study?
Interviewers score structured thinking, valuation fundamentals, commercial awareness, and communication. They watch whether you break the prompt into a clear framework before calculating, whether your methods and assumptions are correct and consistent, whether you connect the analysis to a real business decision including risks and synergies, and whether you state a recommendation up front and defend it without hedging. A common failure is burying the answer instead of leading with it.