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valuation-model

Generates structured corporate valuations using DCF, DDM, SOTP, and relative multiples.

Updated May 5, 2026
Search Tags:#valuation#sensitivity analysis#dcf#equity research#multiples#wacc#valuation traps
One-click install
npx skills add https://github.com/wudye/traderAssistHK --skill valuation-model-wudye
Or copy as Structured Prompt for Agent▼
Please help me install this Agent Skill.
Skill: valuation-model
Source: https://github.com/wudye/traderAssistHK/tree/main/backend/src/skills/valuation-model
Command: npx skills add https://github.com/wudye/traderAssistHK --skill valuation-model-wudye

SYSTEM DOCUMENTATION & REQUIREMENTS

What problem does it solve?

This Skill helps you turn a company snapshot into a defensible valuation by comparing absolute and relative approaches, stress-testing assumptions, and flagging common valuation traps.

Core Features & Use Cases

  • Absolute valuation frameworks: calculate intrinsic value using DCF (FCF + WACC + terminal value) and extend to DDM and SOTP for specific company profiles.
  • Relative valuation cross-checks: assess market pricing with PE banding, PB-ROE matrix interpretation, and EV/EBITDA comparables.
  • Assumption stress testing and consistency checks: run WACC vs growth sensitivity and use cross-validation across methods to catch unrealistic assumptions, then apply a valuation-trap checklist.

Quick Start

Use the valuation-model skill to produce a valuation summary with DCF + relative multiples, a sensitivity matrix, and a valuation-trap check for a listed company.

Frequently Asked Questions about valuation-model

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

FAQPage Schema
What is the best way to price a company using DCF and relative valuation multiples?▼

To price a company effectively, calculate intrinsic value using DCF with WACC and terminal value, then cross-check with PE, PB, and EV/EBITDA multiples. This dual approach produces a defensible valuation summary for equity research.

How do I build a sensitivity analysis matrix for WACC and terminal growth rate?▼

Build a sensitivity analysis by stress-testing WACC against terminal growth rates to catch unrealistic assumptions. This matrix reveals how intrinsic value fluctuations impact your final DCF valuation under varying financial conditions.

When do I need to use DDM or SOTP instead of standard DCF for equity research?▼

Use DDM for mature dividend-paying companies and SOTP for diversified groups with distinct business units. These absolute valuation frameworks extend standard DCF to match specific company profiles and yield accurate intrinsic value estimates.

How can I detect valuation traps before finalizing a target price?▼

Detect valuation traps by applying a dedicated checklist after running cross-validation checks across absolute and relative methods. This identifies unrealistic assumptions and prevents overestimating intrinsic value in your equity research.

Does this valuation approach require explicit WACC and terminal value inputs?▼

Yes, generating a structured corporate valuation requires explicit WACC and terminal-growth inputs, alongside terminal value selection. These parameters drive the DCF calculations and sensitivity analysis needed for defensible target prices.

How do I interpret PE banding and PB-ROE matrix for relative valuation cross-checks?▼

Interpret PE banding and PB-ROE matrix using percentile-based or matrix-based methods to assess market pricing. These relative valuation cross-checks validate your DCF assumptions against comparable companies for mature and cyclical profiles.

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