dcf-valuation

Build UFCF, WACC, and terminal value to determine enterprise and equity value.

2|1|Updated Mar 14, 2026
One-click install
npx skills add https://github.com/brainbytes-dev/everything-claude-finance --skill dcf-valuation-brainbytes-dev
Or copy as Structured Prompt for Agent
Please help me install this Agent Skill.
Skill: dcf-valuation
Source: https://github.com/brainbytes-dev/everything-claude-finance/tree/main/skills/investment-banking/dcf-valuation
Command: npx skills add https://github.com/brainbytes-dev/everything-claude-finance --skill dcf-valuation-brainbytes-dev

SYSTEM DOCUMENTATION & REQUIREMENTS

What problem does it solve?

DCF Valuation provides a disciplined framework to value a company by modeling Unlevered Free Cash Flow, building WACC, projecting cash flows, and calculating terminal value to derive enterprise and equity values.

Core Features & Use Cases

  • Unlevered Free Cash Flow modeling from EBIT, taxes, depreciation, capex, and working capital adjustments.
  • WACC construction with cost of equity, after-tax cost of debt, and capital structure weights.
  • Terminal value calculations using Gordon Growth or exit multiple methods, with sensitivity analysis.
  • Output and validation of valuation results including PV of FCFs, equity value per share, and scenario checks for governance and risk.

Quick Start

Value a company using a full DCF model by inputting historicals, projections, WACC assumptions, and terminal growth to obtain an equity value per share.

Frequently Asked Questions about dcf-valuation

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

FAQPage Schema
How do I perform a DCF valuation from historical financials and projections?

Build a DCF valuation by inputting historicals, projections, tax rates, depreciation, capex, and debt/cash levels to construct UFCF, WACC, and terminal value for a comprehensive valuation summary.

What's the best way to calculate Unlevered Free Cash Flow for company valuation?

Calculate Unlevered Free Cash Flow by adjusting EBIT for taxes, adding back depreciation, and subtracting capital expenditures and working capital changes to derive cash flows available to all capital providers.

How does terminal value calculation work in a DCF model?

Terminal value in a DCF model is calculated using either the Gordon Growth method or exit multiple method, capturing the perpetuity value of cash flows beyond the explicit projection period.

Can I run sensitivity analysis on WACC and terminal growth rate for equity valuation?

Sensitivity analysis on WACC and terminal growth rate is supported, allowing you to model scenario checks for governance and risk while observing impacts on equity value per share.

What inputs do I need to build a WACC for enterprise value estimation?

Building WACC requires cost of equity, after-tax cost of debt, and capital structure weights to discount Unlevered Free Cash Flows and calculate the present value for enterprise value estimation.

When should I use DCF valuation over other company valuation methods?

Use DCF valuation when valuing growth companies, evaluating capital structure implications, or performing detailed sensitivity analyses on WACC and terminal growth, as it provides a disciplined cash flow based framework.