DCF Valuation Skill

Name: DCF Valuation Skill
Brand: AgentVolt
Price: 49.00 USD
Availability: InStock

Runs a discounted cash flow valuation with WACC, terminal value, and sensitivity tables.

Finance / Valuationfinancevaluation

by AgentVoltv1.0.0Published 1y ago2 installs

Free to sign up · every skill included with AgentVolt Pro

Before & after

Same prompt, same agent — the only difference is the skill.

Prompt“What's a reasonable equity valuation for our company”

Beforegeneric AI agent

That's a complex question that depends on many factors. You'd want to look at your revenue projections, growth rate, discount rate assumptions, terminal value, and how comparable companies are trading. Building a DCF model would involve forecasting your free cash flows, estimating your cost of capital, and then discounting everything back. The valuation you get will depend heavily on your assumptions, so it's worth stress-testing different scenarios. What's your current revenue and growth rate? That would help me give you a rough range.

Afterwith DCF Valuation Skill

DCF VALUATION MODEL — SAMPLE COMPANY
Educational modeling only. Not investment advice.

COMPANY SNAPSHOT
Current revenue: 5M / year
Growth rate: 45% YoY (assumed declining to 15% by year 5)
Operating margin: 20% (target)
Tax rate: 21%
WACC: 8.5% (your cost of capital)

FREE CASH FLOW PROJECTION (Years 1-5)

Year 1: Revenue 7.25M (45% growth) → FCF 1.13M
Year 2: Revenue 10.5M (45% growth) → FCF 1.82M
Year 3: Revenue 13.7M (30% growth) → FCF 2.27M
Year 4: Revenue 15.8M (15% growth) → FCF 2.41M
Year 5: Revenue 18.2M (15% growth) → FCF 2.73M

TERMINAL VALUE (assumes 2.5% perpetual growth after year 5)
Year 5 FCF: 2.73M × (1 + 2.5%) / (WACC - growth rate)
= 2.73M × 1.025 / (8.5% - 2.5%)
= 46.8M

PRESENT VALUE CALCULATION (discount to today at 8.5%)
Year 1 FCF: 1.13M / 1.085 = 1.04M
Year 2 FCF: 1.82M / 1.085^2 = 1.55M
Year 3 FCF: 2.27M / 1.085^3 = 1.76M
Year 4 FCF: 2.41M / 1.085^4 = 1.72M
Year 5 FCF: 2.73M / 1.085^5 = 1.83M
Terminal PV: 46.8M / 1.085^5 = 31.2M

TOTAL ENTERPRISE VALUE: 39.2M
Less: Net debt (assume 2M cash, 0 debt): -2M
= EQUITY VALUE: 41.2M

VALUATION RANGE (Sensitivity Analysis)

WACC / Terminal Growth scenarios:
             2% growth | 2.5% growth | 3% growth
7.5% WACC:  $52M      | $58M        | $67M
8.5% WACC:  $38M      | $41M        | $45M (base case)
9.5% WACC:  $29M      | $31M        | $34M

→ VALUATION RANGE: $31M - $58M, base case $41M

SENSITIVITY DRIVER: WACC has bigger impact than terminal growth
• 1% change in WACC = ±$5M valuation swing
• 0.5% change in terminal growth = ±$3M valuation swing
← Spend time validating cost of capital first.

CRITICAL ASSUMPTIONS TO VALIDATE
1. Growth rate (45% → 15%): Is this realistic? Compare to industry comps.
2. Operating margin (20%): Can you hit this? What's your current margin?
3. WACC (8.5%): Risk-adjusted discount rate. Startups typically 12-15%, public SaaS 8-10%.
4. Terminal growth (2.5%): Conservative long-term assumption. Check against GDP growth + inflation.

INTERPRETATION
• $41M base case = reasonable valuation IF your assumptions hold
• If board is offering $30M, you're 27% down from base (modest discount)
• If board is offering $55M, you're 34% up from base (premium, validate assumptions)
• Discount rate of 12-15% (higher risk) drops valuation to $25-32M

← Run this model with YOUR numbers. Adjust growth, margin, and WACC until valuation "feels right" against market comps and your personal confidence in execution.

About this skill

name: dcf-valuation description: Use when Runs a discounted cash flow valuation with WACC, terminal value, and sensitivity tables.

DCF Valuation Skill

Projects unlevered free cash flows, discounts them at a computed WACC, adds a terminal value, and produces an enterprise and equity value with sensitivity tables across growth and discount-rate assumptions. Educational modeling, not investment advice.

What you get

A complete DCF model layout with assumptions, FCF build, and sensitivity grid.

Customize your output

Adapt the assumptions, chart of accounts, and formatting to your company
combine with other AgentVolt finance skills.

Example output

An enterprise/equity value range for a sample company with a football-field summary.

Best for

Analysts, founders, and corp-dev teams.

SKILL.md preview

SKILL.md

---
name: dcf-valuation
description: Use when the user needs a discounted cash flow valuation built with WACC, terminal value, and sensitivity tables for educational modeling purposes.
version: 1.0.0
category: Finance / Valuation
author: AgentVolt
license: proprietary
tags:
  - finance
  - valuation
  - flagship
---

# DCF Valuation Skill

Builds a DCF valuation: unlevered free cash flows, computed WACC, terminal value, enterprise/equity value, and sensitivity tables. Educational modeling, not investment advice.

## When to use

… (sign up to view the full skill)