valuation-consistency-checks

Validate DCF valuation artifacts for internal contradictions across currency, terminal assumptions, and equity bridges.

Updated Sep 9, 2026
One-click install
npx skills add https://github.com/lyndonkl/hermesworld --skill valuation-consistency-checks-lyndonkl
Or copy as Structured Prompt for Agent
Please help me install this Agent Skill.
Skill: valuation-consistency-checks
Source: https://github.com/lyndonkl/hermesworld/tree/main/packages/intrinsic-valuation-analyst/skills/corporate-finance/valuation-consistency-checks
Command: npx skills add https://github.com/lyndonkl/hermesworld --skill valuation-consistency-checks-lyndonkl

SYSTEM DOCUMENTATION & REQUIREMENTS

💡 This Skill includes scripts (resource) components.

What problem does it solve? Finished valuations often contain no single wrong number yet contradict themselves: cash flows in one currency discounted at a rate built in another, terminal growth above the riskfree rate, growth that no reinvestment pays for, or an equity bridge that does not add up. This Skill runs a mechanical gate that reads several valuation artifacts at once and flags every internal contradiction before the valuation is accepted. ## Core Features & Use Cases - Cross-artifact consistency checks: Compares currency, terminal growth versus the riskfree ceiling, terminal reinvestment against g/ROC, capital weights, beta range, growth-reinvestment reconciliation, equity bridge arithmetic, value per share, tax rates, and company-type constraints across mandate, classification, capital, forecast, DCF, and relative valuation JSON files. - Severity model with pipeline gating: Findings are classified as ERROR, WARN, INFO, or SKIP, with exit code 1 on any error and a --json mode emitting machine-readable findings for CI-style pipelines. - Constraint enforcement: Enforces hard stops from a hand-written classification artifact, such as no-fcff-valuation for banks, require-failure-probability for distressed firms, and no-earnings-multiple for negative-earnings companies. - Use Case: After running a DCF on a company, pass the cost-of-capital and DCF output JSON files to the validator; it reports that terminal growth exceeds the riskfree rate and the equity bridge is off, you fix both, rerun, and accept the valuation only when zero errors remain. ## Quick Start Run the validation script with my capital.json and dcf.json artifacts and list every error and warning in the valuation.

Frequently Asked Questions about valuation-consistency-checks

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

FAQPage Schema
How do I check a DCF valuation for internal consistency?

Run scripts/validate.py with paths to your valuation artifacts, such as --capital capital.json and --dcf dcf.json. It cross-checks currency, terminal growth, reinvestment, the equity bridge, and more, then exits 1 if any error-level contradiction is found.

What inputs does the valuation consistency validator need?

It accepts up to six JSON artifacts: mandate, classification, capital, forecast, dcf, and relative. Any subset works; checks whose inputs are missing are reported as SKIP, so the gate remains useful part-way through an analysis.

Does the validator require any Python packages to install?

No installation is needed. The script is pure Python standard library, using only argparse and json, so it runs anywhere Python 3 is available.

Why does the validator report SKIP for every check and exit 0?

A path that does not exist is treated as an artifact that was not supplied, so every dependent check is skipped and the run passes. Verify each file exists before calling the validator and read the SKIP lines rather than only the exit code.

Can the consistency gate tell whether my valuation assumptions are good?

No. It only tests internal consistency, not assumption quality. It cannot judge whether a target margin is realistic or comparables are appropriate; use reverse-engineered implied expectations from market prices for that kind of check.

How do I enforce company-type rules like no FCFF for banks?

Write a classification JSON artifact listing constraints such as no-fcff-valuation, require-failure-probability, or no-earnings-multiple, and ensure the DCF artifact carries a method field. The validator then errors when the valuation violates a recorded rule.