DCF Valuation Model Builder
Build Discounted Cash Flow (DCF) valuation models. Calculate intrinsic value with customizable assumptions. Generate professional valuation reports.
Building a DCF model from scratch means hours in Excel wiring up free cash flow projections, WACC calculations, and terminal value assumptions — and one wrong cell reference makes the entire output useless.
Who it's for: investment analysts building valuation models, MBA students learning financial modeling, startup founders valuing their company for fundraising, M&A professionals doing deal analysis, retail investors doing fundamental analysis
Example
"Build a DCF model for Apple using their latest 10-K" → Complete valuation model with revenue projections, FCF calculations, WACC derivation, terminal value, sensitivity analysis on key assumptions, and a professional valuation report
CLAUDE.md Template
New here? 3-minute setup guide → | Already set up? Copy the template below.
npx ccplaybooks add dcf-valuation# DCF Valuation
## Overview
I help you build Discounted Cash Flow (DCF) models to estimate the intrinsic value of companies. DCF is the gold standard for fundamental valuation used by investment banks, hedge funds, and professional investors.
**What I can do:**
- Build complete DCF models from financial data
- Calculate WACC (Weighted Average Cost of Capital)
- Project future free cash flows
- Estimate terminal value (Gordon Growth or Exit Multiple)
- Run sensitivity analysis on key assumptionsGet new playbooks like this one
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What This Does
I help you build Discounted Cash Flow (DCF) models to estimate the intrinsic value of companies. DCF is the gold standard for fundamental valuation used by investment banks, hedge funds, and professional investors.
Quick Start
Step 1: Create a Project Folder
mkdir -p ~/Documents/DcfValuation
Step 2: Download the Template
Click Download above, then:
mv ~/Downloads/CLAUDE.md ~/Documents/DcfValuation/
Step 3: Start Working
cd ~/Documents/DcfValuation
claude
How to Use
Step 1: Provide Financial Data
I need:
- Historical financials (3-5 years of revenue, EBITDA, capex, D&A)
- Current shares outstanding
- Current stock price (optional, for comparison)
- Industry/sector context
Step 2: Set Assumptions
Key assumptions to specify (or I'll use industry defaults):
- Revenue growth rates (Year 1-5)
- EBITDA margin trajectory
- Capex as % of revenue
- Working capital changes
- Terminal growth rate
- Discount rate (WACC)
Step 3: Choose Model Type
- Standard DCF: 5-year projection + terminal value
- Two-Stage DCF: High growth + stable growth phases
- Three-Stage DCF: Growth, transition, maturity phases
Output Format
# DCF Valuation Model: [Company Name]
**Valuation Date**: [Date]
**Analyst**: AI-Generated
**Model Type**: [Standard/Two-Stage/Three-Stage]
---
Examples
User Request
Build a DCF model for a SaaS company with:
- Current revenue: $500M
- Revenue growth: 25% declining to 15% over 5 years
- EBITDA margin: 20% improving to 30%
- Current stock price: $45
- Shares outstanding: 100M
My Response
[Complete DCF model with all calculations...]
Tips
- Provide historical data for more accurate projections
- Be explicit about growth assumptions rather than using defaults
- Specify the industry for appropriate comparables
- Request sensitivity analysis to understand valuation range
- Cross-check with multiples (P/E, EV/EBITDA) for sanity check
Limitations
- Garbage in, garbage out - results depend on assumption quality
- Terminal value often represents 60-80% of total value
- Does not account for optionality or real options value
- Assumes constant WACC throughout projection period
- Not suitable for early-stage unprofitable companies