What problem does it solve?
DCF model creation is complex, error-prone, and time-consuming when you need internally consistent cash flows, WACC, terminal value, and sensitivity analysis. This skill helps you produce a professional equity valuation model that updates cleanly as assumptions change.
Core Features & Use Cases
- Real DCF model construction: Builds institutional-quality unlevered free cash flow projections with proper tax, D&A, CapEx, and working capital logic.
- WACC + CAPM guardrails: Computes cost of equity via CAPM inputs, cost of debt with after-tax adjustment, and weights based on enterprise value.
- Terminal value + valuation bridge: Applies a perpetuity growth terminal value method with a terminal growth < WACC constraint and converts EV to equity value per share using diluted shares.
- Three-scenario support (Bear/Base/Bull): Uses a scenario selector pattern to drive assumptions consistently across the model.
- Sensitivity analysis: Generates full DCF recalculation grids (no placeholder/linear approximations), with the base case centered and highlighted.
Quick Start
Use the dcf-model skill to generate an Excel DCF equity valuation for the company you specify, then confirm the raw inputs and the projected schedule before finalizing sensitivity tables.