creating-financial-models

Model discounted cash flows, WACC, and terminal value for investment valuations.

2|Updated May 20, 2026
One-click install
npx skills add https://github.com/Dianshu-Liao/SkilLGuard --skill creating-financial-models-dianshu-liao
Or copy as Structured Prompt for Agent
Please help me install this Agent Skill.
Skill: creating-financial-models
Source: https://github.com/Dianshu-Liao/SkilLGuard/tree/main/data/skills/creating-financial-models
Command: npx skills add https://github.com/Dianshu-Liao/SkilLGuard --skill creating-financial-models-dianshu-liao

SYSTEM DOCUMENTATION & REQUIREMENTS

💡 This Skill requires numpy, pandas, and includes scripts (resource) components.

What problem does it solve?

It eliminates the repetitive, error-prone work of building investment valuation models by providing a structured way to run DCF analysis, sensitivity testing, Monte Carlo-style scenario assessment, and scenario planning.

Core Features & Use Cases

  • Discounted Cash Flow (DCF) Analysis: Projects free cash flows, computes terminal value (growth or exit multiple), derives enterprise value, and supports WACC-based discounting for valuation decisions.
  • Sensitivity Analysis: Measures how changes in key assumptions (e.g., WACC, terminal growth, margins) impact valuation outputs and identifies critical drivers.
  • Scenario Planning: Compares best/base/worst (or custom) cases using probability weights to support risk-aware decision-making.

Quick Start

Use the creating-financial-models skill to build a DCF valuation for the attached financials and return the enterprise value summary along with key valuation assumptions.

Frequently Asked Questions about creating-financial-models

High-intent search queries and answers about installing and using this skill.

FAQPage Schema
How do I build a DCF valuation model from historical financial inputs?

You can build a DCF valuation by defining historical inputs and projection assumptions, computing WACC from CAPM and cost of debt, projecting free cash flows, and deriving terminal value via growth or exit multiple methods to produce enterprise value summaries.

What is the best way to run sensitivity analysis for WACC and terminal growth assumptions?

Sensitivity analysis for WACC and terminal growth is handled by measuring how changes in key assumptions impact valuation outputs, identifying critical drivers, and comparing best/base/worst cases using probability weights to support risk-aware decision-making.

Can I use pandas and numpy for corporate valuation and M&A analysis workflows?

Yes, corporate valuation and M&A analysis workflows are supported using pandas and numpy, applying WACC-based discounting to projected cash flows and computing terminal value to derive enterprise and optional equity valuation summaries.

Does scenario planning support probability weights for risk-aware investment decisions?

Scenario planning supports risk-aware investment decisions by comparing best, base, and worst cases—or custom scenarios—using assigned probability weights to evaluate uncertainty and assumption sensitivity in valuation outputs.

How does WACC computation from CAPM work for project finance and LBO return modeling?

WACC computation from CAPM for project finance and LBO return modeling works by calculating cost of equity and cost of debt, then discounting projected free cash flows to derive enterprise value and optional equity valuation summaries.