creating-financial-models

What problem does it solve?

Building complex financial models like DCF, running sensitivity analyses, and performing Monte Carlo simulations are time-consuming and require specialized expertise. This skill automates these advanced financial tasks, allowing users to quickly generate robust models and insights without manual spreadsheet work.

Core Features & Use Cases

• Discounted Cash Flow (DCF) Analysis: Construct full DCF models, calculate WACC, and derive enterprise/equity valuations.
• Sensitivity & Scenario Planning: Test key assumptions, create data tables, and model best/base/worst-case scenarios to understand risk.
• Monte Carlo Simulations: Run thousands of iterations to model uncertainty and generate confidence intervals for valuations.
• Use Case: An investment analyst needs to quickly value a target company, assess the impact of varying growth rates and discount rates, and understand the probability distribution of potential outcomes. This skill allows them to input financial data and assumptions to generate a comprehensive valuation report in minutes.

Quick Start

Build a DCF model for 'Acme Corp' using the attached historical financials and these assumptions: 5 projection years, 10% average revenue growth, 20% EBITDA margin, 3% terminal growth, and a WACC of 8%.