dcf-valuation
A specialized skill providing detailed DCF (Discounted Cash Flow) valuation methodology and practical guidelines. Used by the valuation-expert agent for WACC calculation, FCF estimation, and terminal value computation when calculating enterprise value. Automatically applied in contexts such as 'DCF analysis', 'discounted cash flow', 'WACC calculation', 'enterprise valuation', 'terminal value'. However, real-time market data retrieval and actual transaction advisory are outside the scope of this skill.
Best use case
dcf-valuation is best used when you need a repeatable AI agent workflow instead of a one-off prompt.
A specialized skill providing detailed DCF (Discounted Cash Flow) valuation methodology and practical guidelines. Used by the valuation-expert agent for WACC calculation, FCF estimation, and terminal value computation when calculating enterprise value. Automatically applied in contexts such as 'DCF analysis', 'discounted cash flow', 'WACC calculation', 'enterprise valuation', 'terminal value'. However, real-time market data retrieval and actual transaction advisory are outside the scope of this skill.
Teams using dcf-valuation should expect a more consistent output, faster repeated execution, less prompt rewriting.
When to use this skill
- You want a reusable workflow that can be run more than once with consistent structure.
When not to use this skill
- You only need a quick one-off answer and do not need a reusable workflow.
- You cannot install or maintain the underlying files, dependencies, or repository context.
Installation
Claude Code / Cursor / Codex
Manual Installation
- Download SKILL.md from GitHub
- Place it in
.claude/skills/dcf-valuation/SKILL.mdinside your project - Restart your AI agent — it will auto-discover the skill
How dcf-valuation Compares
| Feature / Agent | dcf-valuation | Standard Approach |
|---|---|---|
| Platform Support | Not specified | Limited / Varies |
| Context Awareness | High | Baseline |
| Installation Complexity | Unknown | N/A |
Frequently Asked Questions
What does this skill do?
A specialized skill providing detailed DCF (Discounted Cash Flow) valuation methodology and practical guidelines. Used by the valuation-expert agent for WACC calculation, FCF estimation, and terminal value computation when calculating enterprise value. Automatically applied in contexts such as 'DCF analysis', 'discounted cash flow', 'WACC calculation', 'enterprise valuation', 'terminal value'. However, real-time market data retrieval and actual transaction advisory are outside the scope of this skill.
Where can I find the source code?
You can find the source code on GitHub using the link provided at the top of the page.
SKILL.md Source
# DCF Valuation — Discounted Cash Flow Valuation Methodology
A specialized skill that enhances the DCF analysis capabilities of the valuation-expert agent.
## Target Agent
- **valuation-expert** — DCF model construction, WACC calculation, terminal value computation
## DCF Model Construction Process
### Step 1: FCFF (Free Cash Flow to Firm) Estimation
```
FCFF = EBIT x (1 - Tax Rate)
+ Depreciation & Amortization
- Capital Expenditures (CAPEX)
- Change in Net Working Capital (dNWC)
```
| Item | Estimation Method | Key Considerations |
|------|------------------|---------------------|
| EBIT | Revenue x Operating Margin estimate | Use normalized EBIT |
| Tax Rate | Effective or statutory rate | Consider deferred tax |
| D&A | Tangible Assets x Depreciation Rate | Verify balance with CAPEX |
| CAPEX | Maintenance CAPEX + Growth CAPEX | Validate ratio vs. D&A |
| dNWC | NWC as % of Revenue | Cash outflow with revenue growth |
### Step 2: WACC (Weighted Average Cost of Capital) Calculation
```
WACC = E/(E+D) x Ke + D/(E+D) x Kd x (1-T)
```
| Variable | Calculation Method | Reference Values |
|----------|-------------------|-----------------|
| Ke (Cost of Equity) | CAPM = Rf + B x MRP + SP | 10-15% |
| Rf (Risk-Free Rate) | 10-year government bond yield | 3-4% |
| MRP (Market Risk Premium) | Equity Risk Premium | 5-7% |
| B (Beta) | Peer Unlevered B average → Re-lever | 0.8-1.5 |
| SP (Size Premium) | Market cap based | Startups 3-5% |
| Kd (Cost of Debt) | Weighted average borrowing rate | 4-6% |
| T (Tax Rate) | Effective tax rate | 20-25% |
### CAPM Beta Calculation Process
```
1. Select 5+ comparable companies
2. Collect each company's Levered Beta
3. Calculate Unlevered Beta: BU = BL / [1 + (1-T) x D/E]
4. Calculate average Unlevered Beta of comparables
5. Re-lever for target company's capital structure: BL = BU x [1 + (1-T) x D/E]
```
### Step 3: Terminal Value
**Method 1: Perpetuity Growth Model (Gordon Growth)**
```
TV = FCFFn+1 / (WACC - g)
= FCFFn x (1+g) / (WACC - g)
```
| Variable | Standard | Caution |
|----------|---------|---------|
| g (Perpetual Growth Rate) | At or below GDP growth (1.5-3%) | Model invalid if g > WACC |
| FCFFn | Last forecast year FCF | Must be at normalized level |
**Method 2: Exit Multiple**
```
TV = EBITDAn x Exit Multiple
```
| Industry | Typical EV/EBITDA Range |
|---------|------------------------|
| SaaS | 15-30x |
| Manufacturing | 6-10x |
| Retail | 8-12x |
| Financial Services | 8-12x |
| Biotech | 20-40x (pipeline value) |
### Step 4: Enterprise Value Calculation
```
Enterprise Value = Sum(FCFFt / (1+WACC)^t) + TV / (1+WACC)^n
Equity Value = EV - Net Debt - Preferred Stock - Minority Interest
Per-Share Value = Equity Value / Shares Outstanding
```
## DCF Quality Validation Checklist
- [ ] Is terminal value within 60-75% of total value? (Warning if exceeded)
- [ ] Is perpetual growth rate at or below GDP growth?
- [ ] Is the beta used in WACC calculation reasonable?
- [ ] Is FCF projection consistent with historical trends?
- [ ] Is D&A approximately equal to maintenance CAPEX? (for mature companies)
- [ ] Does revenue growth rate gradually converge?
- [ ] Does operating margin converge to industry average?
## Startup/High-Growth Company DCF Adjustments
| Issue | Solution |
|-------|----------|
| Negative cash flows | Explicitly state breakeven timing, model cash burn until then |
| High growth rates | 2-stage model (high growth period + stable growth period) |
| Beta not estimable | Use comparable public company beta, or directly apply VC discount rate (25-35%) |
| Insufficient market data | Parallel VC Method, Berkus Method |
## Multiples Valuation (Cross-check)
| Multiple | Applicable To | Calculation |
|---------|--------------|-------------|
| EV/Revenue (PSR) | Early SaaS, high growth | EV / Annual Revenue (NTM) |
| EV/EBITDA | Profitable companies | EV / EBITDA (NTM) |
| P/E | Public companies | Stock Price / EPS |
| EV/ARR | SaaS | EV / ARR |
Always cross-validate DCF results with multiples valuation.Related Skills
venue-evaluation
venue assessment scorecard. logistics-manager agent event venue comparison assessmentto do when reference. 'venue assessment', ' comparison', 'venue ' request when usage. However, venue exampleapprox. versus totalapprox. scope outside.
patent-valuation
Patent valuation framework. Referenced by the ip-analyst and license-strategist agents when calculating the economic value of IP assets. Use for 'patent value', 'IP valuation', or 'royalty calculation' requests. Legal patent infringement assessment and litigation representation are out of scope.
sustainability-audit
Full audit pipeline for ESG/sustainability where an agent team collaborates to generate environmental, social, and governance assessments along with an integrated report and improvement plan. Use this skill for requests such as 'run an ESG audit', 'write a sustainability report', 'ESG assessment', 'carbon emissions calculation', 'ESG rating diagnosis', 'governance review', 'social responsibility assessment', 'GRI report', 'TCFD disclosure', 'ESG improvement plan', and other ESG/sustainability tasks. Also supports assessment of specific pillars (E/S/G) only or improving existing reports. However, actual on-site audit execution, third-party verification certificate issuance, ESG rating agency score changes, and carbon credit trading are outside the scope of this skill.
materiality-assessment
ESG materiality assessment matrix. Referenced by the esg-reporter and improvement-planner agents when evaluating ESG issue materiality and setting priorities. Use for 'materiality assessment', 'importance analysis', or 'Materiality Matrix' requests. Stakeholder surveys and external certification are out of scope.
ghg-protocol
GHG Protocol detailed guide. Referenced by the environmental-analyst agent when calculating and reporting greenhouse gas emissions. Use for 'GHG Protocol', 'carbon emissions', 'Scope 1/2/3', or 'carbon footprint' requests. Carbon credit trading and CDM project execution are out of scope.
citation-standards
Academic citation and reference standards guide. Referenced by the paper-writer and submission-preparer agents when composing citations and references. Use for 'citation format', 'APA', or 'references' requests. Original paper retrieval and professional database access are out of scope.
academic-paper
Full research pipeline for academic paper writing where an agent team collaborates to generate research design, experiment protocols, analysis, manuscript writing, and submission preparation. Use this skill for requests such as 'write an academic paper', 'research paper writing', 'help me write a paper', 'design a study', 'run statistical analysis', 'prepare journal submission', 'manuscript writing', 'research methodology design', 'hypothesis testing', 'academic writing', and other academic research paper tasks. Also supports analysis, rewriting, and submission preparation when existing data or drafts are available. However, actual data collection execution, official IRB submission, journal system login and upload, and running actual statistical software are outside the scope of this skill.
product-copy-formulas
Product copy formula library. Referenced by the detail-page-writer and marketing-manager agents when writing purchase-driving copy. Use for 'product copy', 'marketing copy', or 'ad copy' requests. Ad placement and design mockup creation are out of scope.
ecommerce-launcher
Full launch pipeline for e-commerce products where an agent team collaborates to generate product planning, detail pages, pricing strategy, marketing, and CS setup all at once. Use this skill for requests such as 'launch an e-commerce product', 'prepare a product launch', 'register a product on Naver Smart Store', 'launch on Coupang', 'create a detail page', 'develop a pricing strategy', 'create a marketing plan', 'launch prep', 'product planning brief', 'e-commerce CS manual', and other e-commerce product launch tasks. Also supports supplementing pricing/marketing/CS even when existing briefs or detail pages are provided. However, actual platform API integration (automated product registration), payment system development, logistics system integration, and real-time order management are outside the scope of this skill.
conversion-optimization
Purchase conversion optimization framework. Referenced by the detail-page-writer and pricing-strategist agents when designing detail pages and pricing with a conversion focus. Use for 'conversion rate optimization', 'CRO', or 'purchase psychology' requests. A/B testing tool setup and funnel automation are out of scope.
real-estate-analyst
Real estate investment analysis pipeline. An agent team collaborates to produce market research, location analysis, profitability analysis, risk assessment, and investment reports. Use this skill for requests such as 'analyze this real estate', 'apartment investment analysis', 'studio apartment yield', 'real estate market research', 'location analysis', 'real estate investment report', 'buy vs lease', 'reconstruction investment analysis', 'commercial property yield analysis', and other general real estate investment analysis tasks. Actual purchase contracts, brokerage services, interior design, and property management are outside the scope of this skill.
location-scoring
Location scoring scorecard. Referenced by the location-analyst agent for systematic real estate location evaluation. Use for requests involving 'location analysis', 'location assessment', or 'commercial area analysis'. On-site inspections and surveying are out of scope.