ReddRadar
Agent skill
dcf-valuation-modeler
Discounted Cash Flow model builder for comprehensive company valuations with WACC calculation, terminal value estimation, and sensitivity analysis
Install this agent skill to your Project
npx add-skill https://github.com/a5c-ai/babysitter/tree/main/library/specializations/domains/business/finance-accounting/skills/dcf-valuation-modeler
Metadata
Additional technical details for this skill
- domain
- business
- category
- financial-modeling
- priority
- high
- specialization
- finance-accounting
SKILL.md
DCF Valuation Modeler
Overview
The DCF Valuation Modeler skill provides comprehensive Discounted Cash Flow analysis capabilities for company valuations. It combines free cash flow projections with weighted average cost of capital (WACC) calculations and terminal value estimation to produce robust enterprise valuations.
Capabilities
Free Cash Flow Projection
- Revenue and expense forecasting models
- Working capital requirement projections
- Capital expenditure modeling
- Depreciation and amortization schedules
- Tax effect calculations
- Unlevered free cash flow computation
WACC Calculation
- Cost of equity via Capital Asset Pricing Model (CAPM)
- Cost of debt determination with tax shield
- Capital structure weighting
- Beta estimation and adjustment
- Risk-free rate selection
- Equity risk premium calculation
Terminal Value Estimation
- Perpetuity growth method implementation
- Exit multiple methodology
- Terminal value reasonability checks
- Fade period modeling
- Long-term growth rate validation
Sensitivity Analysis
- Two-variable sensitivity tables
- Tornado chart generation
- Key driver identification
- Break-even analysis
- Scenario comparison matrices
Monte Carlo Simulation
- Probability distribution assignment
- Correlation matrix handling
- Convergence analysis
- Confidence interval generation
- Value at Risk integration
Multi-Scenario Analysis
- Base, bull, and bear case modeling
- Probability-weighted valuation
- Scenario documentation
- Assumption tracking
- Version control
Usage
Basic DCF Model
Input: Company financials, growth assumptions, discount rate parameters
Process: Project cash flows, calculate WACC, determine terminal value, discount to present
Output: Enterprise value, equity value per share, sensitivity analysis
Valuation with Scenarios
Input: Historical data, management guidance, market conditions
Process: Develop multiple scenarios, probability weight outcomes
Output: Probability-weighted valuation range with confidence intervals
Integration
Used By Processes
- Discounted Cash Flow (DCF) Valuation
- Capital Investment Appraisal
- M&A Financial Due Diligence
Tools and Libraries
- Excel/Python financial libraries
- numpy-financial
- scipy
- pandas for data manipulation
Best Practices
- Validate assumptions against historical performance
- Cross-check terminal value against comparable transactions
- Ensure WACC inputs are internally consistent
- Document all key assumptions and sources
- Perform sanity checks on implied multiples
- Consider stage-of-cycle adjustments
Recommended Agent Skills
Expand your agent's capabilities with these related and highly-rated skills.
a5c-ai/babysitter
gsd-tools
Central utility skill for GSD operations. Provides config parsing, slug generation, timestamps, path operations, and orchestrates calls to other specialized skills. Acts as the unified entry point that the original gsd-tools.cjs provided via its lib/ modules (commands, config, core, init).
a5c-ai/babysitter
model-profile-resolution
Resolve model profile (quality/balanced/budget) at orchestration start and map agents to specific models. Enables cost/quality tradeoffs by selecting appropriate AI models for each agent role.
a5c-ai/babysitter
verification-suite
Plan structure validation, phase completeness checks, reference integrity verification, and artifact existence confirmation. Provides the structured verification layer ensuring GSD artifacts are well-formed and complete.
a5c-ai/babysitter
state-management
STATE.md reading, writing, and field-level updates. Provides cross-session state persistence via .planning/STATE.md with structured fields for current task, completed phases, blockers, decisions, and quick tasks.
a5c-ai/babysitter
git-integration
Git commit patterns, formats, and conventions for GSD methodology. Provides atomic commits per task, structured commit messages, planning file commits, branch management, and milestone tag operations.
a5c-ai/babysitter
frontmatter-parsing
YAML frontmatter parsing and manipulation for .planning/ documents. Provides read, write, update, query, and validation operations on frontmatter blocks in GSD markdown artifacts.
Didn't find tool you were looking for?