What problem does it solve? Valuations often start from numbers extrapolated without a story, or from stories with no numbers behind them. This Skill bridges that gap by translating a qualitative business narrative into the five inputs a discounted cash flow model needs: revenue growth, target operating margin, reinvestment efficiency, cost of capital, and failure probability. ## Core Features & Use Cases - Life Cycle Classification: Places the company in one of six corporate life cycle stages (Start-up through Decline) using a structured checklist, which shapes which drivers matter most. - TAM/SAM/SOM Sizing: Sizes the addressable market with both top-down and bottom-up methods and cross-checks the estimates, bounding revenue projections by realistic market share. - Narrative-to-Driver Mapping: Produces a value driver table where every number traces back to a sentence in the story, plus at least one alternative narrative with its own driver values. - Use Case: An analyst valuing Tesla circa 2018 classifies it as Young Growth, sizes the EV market at $500-600B, and derives a 25% revenue CAGR, 10% target margin, 2.5x sales-to-capital ratio, 8.5% WACC, and 10% failure probability, each justified by the narrative. ## Quick Start Ask the assistant to build a valuation narrative for a company, providing its industry, current revenue, operating income, and competitive landscape.
