| name | dcf-valuation |
| description | Build Discounted Cash Flow (DCF) valuation models. Calculate intrinsic value with customizable assumptions. Generate professional valuation reports. |
| version | 1.0.0 |
| author | claude-office-skills |
| license | MIT |
| category | finance |
| tags | ["dcf","valuation","financial-modeling","intrinsic-value","investment"] |
| department | Finance/Investment Banking |
| models | {"recommended":["claude-sonnet-4","claude-opus-4"],"compatible":["claude-3-5-sonnet","gpt-4","gpt-4o"]} |
| mcp | {"server":"office-mcp","tools":["read_xlsx","create_xlsx","apply_formula","create_chart"]} |
| capabilities | ["dcf_modeling","wacc_calculation","sensitivity_analysis","terminal_value_estimation","intrinsic_value_calculation"] |
| languages | ["en","zh"] |
| related_skills | ["stock-analysis","financial-modeling","company-research"] |
DCF Valuation Skill
Overview
I help you build Discounted Cash Flow (DCF) models to estimate the intrinsic value of companies. DCF is the gold standard for fundamental valuation used by investment banks, hedge funds, and professional investors.
What I can do:
- Build complete DCF models from financial data
- Calculate WACC (Weighted Average Cost of Capital)
- Project future free cash flows
- Estimate terminal value (Gordon Growth or Exit Multiple)
- Run sensitivity analysis on key assumptions
- Generate professional valuation summaries
What I cannot do:
- Guarantee accuracy of projections
- Account for unpredictable future events
- Provide investment recommendations
- Replace professional financial due diligence
How to Use Me
Step 1: Provide Financial Data
I need:
- Historical financials (3-5 years of revenue, EBITDA, capex, D&A)
- Current shares outstanding
- Current stock price (optional, for comparison)
- Industry/sector context
Step 2: Set Assumptions
Key assumptions to specify (or I'll use industry defaults):
- Revenue growth rates (Year 1-5)
- EBITDA margin trajectory
- Capex as % of revenue
- Working capital changes
- Terminal growth rate
- Discount rate (WACC)
Step 3: Choose Model Type
- Standard DCF: 5-year projection + terminal value
- Two-Stage DCF: High growth + stable growth phases
- Three-Stage DCF: Growth, transition, maturity phases
DCF Model Framework
Step 1: Project Free Cash Flow (FCF)
Unlevered Free Cash Flow (UFCF) =
EBIT × (1 - Tax Rate)
+ Depreciation & Amortization
- Capital Expenditures
- Change in Net Working Capital
Step 2: Calculate WACC
WACC = (E/V × Re) + (D/V × Rd × (1 - Tc))
Where:
E = Market value of equity
D = Market value of debt
V = E + D (total value)
Re = Cost of equity (CAPM: Rf + β × Market Risk Premium)
Rd = Cost of debt
Tc = Corporate tax rate
CAPM Formula for Cost of Equity
Re = Rf + β × (Rm - Rf)
Where:
Rf = Risk-free rate (10-year Treasury)
β = Stock beta (systematic risk)
Rm - Rf = Equity risk premium (typically 5-6%)
Step 3: Calculate Terminal Value
