d-wwei DCF Valuation Command
Build an institutional-quality DCF model that uses comparable company analysis to inform valuation ranges.
Workflow
Step 1: Gather Company Information
If a company name or ticker is provided, use it. Otherwise ask:
- "What company would you like to value?"
Step 2: Run Comparable Company Analysis
First, load the comps-analysis skill to build trading comps:
Use skill: "comps-analysis" to:
- Identify 4-6 comparable public companies
- Pull operating metrics (Revenue, EBITDA, margins, growth)
- Pull valuation multiples (EV/Revenue, EV/EBITDA, P/E)
- Calculate statistical summary (median, 25th/75th percentiles)
Key outputs to capture from comps:
- Median EV/EBITDA multiple → informs terminal value exit multiple
- Median EV/Revenue multiple → sanity check on DCF output
- Peer growth rates → benchmark for revenue projections
- Peer margins → benchmark for margin assumptions
Step 3: Build DCF Model
Load the dcf-model skill to construct the valuation:
Use skill: "dcf-model" to:
- Gather historical financials and market data
- Build revenue projections (Bear/Base/Bull cases)
- Model operating expenses and FCF
- Calculate WACC using CAPM
- Discount cash flows and calculate terminal value
- Bridge to equity value and implied share price
Use comps to inform DCF assumptions:
| Comps Output | DCF Input |
|---|---|
| Peer median EV/EBITDA | Terminal exit multiple range |
| Peer 25th-75th EV/EBITDA | Sensitivity analysis range |
| Peer median growth rate | Benchmark for revenue assumptions |
| Peer median EBITDA margin | Target margin in terminal year |
| Peer median P/E | Cross-check implied P/E from DCF |
Step 4: Cross-Check Valuation
After DCF is complete, validate:
- Implied EV/EBITDA from DCF vs peer median
- If DCF implies 25x but peers trade at 12x, investigate why
- Implied P/E from DCF vs peer median
- Terminal value as % of EV (should be 50-70%)
- Implied growth embedded in valuation vs peer growth rates
Step 5: Deliver Output
Provide:
- Comps analysis spreadsheet (.xlsx) with peer trading multiples
- DCF model (.xlsx) with:
- Bear/Base/Bull scenarios
- Sensitivity tables (WACC vs Terminal Growth, etc.)
- Valuation summary with implied upside/downside
- Summary explaining:
- Key valuation drivers
- How comps informed the analysis
- Risks and sensitivities to watch
Example Output Summary
VALUATION SUMMARY: [Company] ([Ticker])
Comparable Companies Analysis:
- Peer Group: [List of 4-6 comps]
- Median EV/EBITDA: 12.5x (range: 10.2x - 15.8x)
- Median EV/Revenue: 3.2x (range: 2.1x - 4.5x)
DCF Valuation (Base Case):
- Implied Share Price: $XX.XX
- Current Price: $YY.YY
- Implied Upside: +XX%
Valuation Cross-Check:
- DCF Implied EV/EBITDA: 13.2x (vs peer median 12.5x)
- DCF Implied P/E: 22.4x (vs peer median 20.1x)
- Terminal Value: 62% of EV (within normal range)
Key Assumptions:
- Revenue CAGR: X% (vs peer median X%)
- Terminal EBITDA Margin: X% (vs peer median X%)
- WACC: X.X%
- Terminal Growth: X.X%