dcf-valuation

Builds auditable DCF valuations with WACC, terminal value, sensitivity, and enterprise-to-equity bridges.

Updated Jun 21, 2026
One-click install
npx skills add https://github.com/lwokeray/cowork-plugins --skill dcf-valuation-lwokeray
Or copy as Structured Prompt for Agent▼
Please help me install this Agent Skill.
Skill: dcf-valuation
Source: https://github.com/lwokeray/cowork-plugins/tree/main/plugins/finance-cowork/skills/dcf-valuation
Command: npx skills add https://github.com/lwokeray/cowork-plugins --skill dcf-valuation-lwokeray

SYSTEM DOCUMENTATION & REQUIREMENTS

What problem does it solve? Building a defensible DCF valuation requires tying forecasts to unlevered free cash flow, sourcing WACC inputs, computing terminal value, and bridging enterprise value to per-share equity value without double counting. This Skill enforces a consistent, auditable workflow so every assumption is sourced, every sensitivity recalculates the model, and results are presented as ranges rather than false precision. ## Core Features & Use Cases - Full DCF Bridge: Constructs the complete chain from operating forecast through NOPAT, unlevered FCF, discount factors, terminal value, enterprise value, equity value, and diluted per-share value. - WACC and Terminal Value Builds: Computes cost of equity, after-tax cost of debt, and capital weights with sourced inputs, supporting both Gordon growth and exit multiple terminal value methods with cross-checks. - Sensitivity and Scenario Analysis: Generates WACC x terminal growth and WACC x exit multiple matrices plus business driver scenarios, with invalid WACC <= g cells guarded as N/A. - Use Case: A corporate finance analyst needs a valuation range for a strategic planning review. Provide the approved five-year forecast, and the Skill produces the FCF schedule, WACC build, EV-to-equity bridge, sensitivity matrices, source register, and validation checks. ## Quick Start Ask the assistant to build a DCF valuation from your approved five-year forecast with a WACC sensitivity matrix and an enterprise-to-equity bridge.

Frequently Asked Questions about dcf-valuation

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

FAQPage Schema
How do I build a DCF valuation model from a financial forecast?▼

Start by confirming the valuation date, currency, forecast version, and timing convention, then tie revenue, EBIT, tax, D&A, capex, and working capital to the approved model to compute unlevered free cash flow. Discount the forecast FCF and terminal value at WACC, then bridge enterprise value to equity value and diluted per-share value.

How to calculate terminal value in a DCF using Gordon growth vs exit multiple?▼

Gordon growth computes TV as terminal FCF divided by WACC minus growth, requiring WACC greater than g and a normalized final year. Exit multiple applies a source-backed comparable multiple to a terminal metric like EBITDA. Use both as cross-checks rather than averaging them without explanation.

What inputs are required for a WACC calculation in valuation?▼

WACC requires a sourced risk-free rate, equity risk premium, beta with levering methodology, pre-tax cost of debt, tax rate, and market-value capital structure weights. Each input needs a source and as-of date, and the currency and inflation basis must match the cash flows.

Why does my DCF terminal value look too large?▼

An oversized terminal value usually means the WACC minus growth spread is too small or the final-year FCF is not normalized to a sustainable state. Check the growth rate against long-term economic growth, verify final-year margins and capex, and disclose terminal value as a percentage of enterprise value.

When should I not use a DCF valuation approach?▼

Avoid DCF when forecast or free cash flow inputs are missing and a precise price target is demanded, or when the request is personal investment advice or trade execution. Use a full three-statement model build or ratio analysis instead when those are the actual goals.

How do I avoid double counting in the enterprise-to-equity bridge?▼

List every debt-like item, claim, cash balance, and non-operating asset explicitly and reconcile each one. Do not include non-operating assets in enterprise value and then add them again to equity, and align the net debt date with the valuation date.