# Valuation

> Value businesses, projects, or assets using appropriate methods (DCF, multiples, precedent transactions) with explicit assumptions and limitations. Use when supporting investments, M&A, fundraising, or impairment and strategic decisions.

- Skill: `itsual/valuation` (Agent Skill)
- Install (CLI): `npx skillmds@latest add itsual/valuation`
- Raw SKILL.md: https://api.skillmd.com/api/skills/itsual/valuation/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: itsual (https://skillmd.com/u/itsual)
- Updated: 2026-09-21
- Page: https://skillmd.com/skills/itsual/valuation

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# Valuation

## Overview

Valuation estimates what something is worth under stated assumptions. Method choice, assumption quality, and humility about uncertainty determine usefulness.

## When to Use

- M&A and investment decisions
- Fundraising and dilution analysis
- Internal project or business-unit valuation
- Fairness and impairment contexts

## Core Methods

- **DCF** — intrinsic value from projected cash flows
- **Trading multiples** — relative value vs peers
- **Precedent transactions** — relative value vs deals
- **Asset-based** — when earnings power is secondary

## Principles

- Method should fit the asset and available data
- Garbage assumptions in → precise-looking garbage out
- Ranges and sensitivities beat false precision
- Value depends on who the buyer is and what synergies exist

## Verification

- [ ] Method selection is justified
- [ ] Key assumptions are explicit and stress-tested
- [ ] Output is presented as a range with drivers