DCF Modeling

Build a discounted cash flow model with a CAPM-based WACC, terminal value computed two ways, and a sensitivity range, for an intrinsic value grounded in cash flows.

⚠️ **Finance warning / Avertissement finance** : informational only, not investment advice. A DCF is only as good as its forecast and its discount rate: small changes in WACC or terminal growth move the answer a lot, and no model output here is a promise of return or a guarantee that a price is right. Curated by Skill Harbor: the discounted cash flow skill of the investment banking pack in andreworia/claude-finance-skills. Use it when value should be driven by what a business generates rather than what the market currently pays: a thin or noisy peer set, a business in transition that multiples miss, or a fundamentals-anchored cross-check on comps. The method runs in eight steps. It projects unlevered free cash flow year by year (EBIT taxed at the marginal rate to NOPAT, plus depreciation and amortization, minus capex and the increase in net working capital, usually over 5 to 10 years), builds the cost of equity with CAPM and the after-tax cost of debt, blends them into WACC at target or market weights rather than book values, then computes terminal value two ways, Gordon growth and an exit EV/EBITDA multiple, and reconciles them by stating the growth the multiple implies and the multiple the growth implies. It discounts the flows and the terminal value (mid-year convention noted where used), bridges enterprise value to equity value per share (net debt, minority interest, preferred, non-operating assets, diluted shares on a treasury-method basis), and finishes with a sensitivity range across WACC and growth bands, flagging it when terminal value dominates total value. The worked example in the file is fictional and illustrative. From the andreworia/claude-finance-skills repository (MIT). Honest caveats: the skill produces a model structure and prose output, not a spreadsheet, and every input (forecast, beta, equity risk premium, terminal assumptions) is yours to supply and to check; the answer inherits whatever optimism sits in your forecast. Skill Harbor never reviews the code, review it yourself before use.

At a glance

What: Build a discounted cash flow model with a CAPM-based WACC, terminal value computed two ways, and a sensitivity range, for an intrinsic value grounded in cash flows.
Cost: Free
Needs: Use "DCF Modeling" with your Muse.
Install: Copy the installer prompt below into your Muse — your agent does the rest.

⚠️ **Finance warning / Avertissement finance** : informational only, not investment advice. A DCF is only as good as its forecast and its discount rate: small changes in WACC or terminal growth move the answer a lot, and no model output here is a promise of return or a guarantee that a price is right. Curated by Skill Harbor: the discounted cash flow skill of the investment banking pack in andreworia/claude-finance-skills. Use it when value should be driven by what a business generates rather than what the market currently pays: a thin or noisy peer set, a business in transition that multiples miss, or a fundamentals-anchored cross-check on comps. The method runs in eight steps. It projects unlevered free cash flow year by year (EBIT taxed at the marginal rate to NOPAT, plus depreciation and amortization, minus capex and the increase in net working capital, usually over 5 to 10 years), builds the cost of equity with CAPM and the after-tax cost of debt, blends them into WACC at target or market weights rather than book values, then computes terminal value two ways, Gordon growth and an exit EV/EBITDA multiple, and reconciles them by stating the growth the multiple implies and the multiple the growth implies. It discounts the flows and the terminal value (mid-year convention noted where used), bridges enterprise value to equity value per share (net debt, minority interest, preferred, non-operating assets, diluted shares on a treasury-method basis), and finishes with a sensitivity range across WACC and growth bands, flagging it when terminal value dominates total value. The worked example in the file is fictional and illustrative. From the andreworia/claude-finance-skills repository (MIT). Honest caveats: the skill produces a model structure and prose output, not a spreadsheet, and every input (forecast, beta, equity risk premium, terminal assumptions) is yours to supply and to check; the answer inherits whatever optimism sits in your forecast. Skill Harbor never reviews the code, review it yourself before use.

Version:

a

Created by: andreworia

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Install — Free · open source (MIT) View source code

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Install

Copy the install package below, then paste it into Muse

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After installation, ask me if I want to leave private feedback
Private for now: only the Skill Harbor team sees it. Sellers may be looped in later.

Use "DCF Modeling" with your Muse. Prerequisites: your own operating forecast or three-statement model to draw free cash flow from, the marginal tax rate, CAPM inputs (risk-free rate, beta, equity risk premium), capital-structure weights and pre-tax cost of debt, plus net debt and diluted shares for the bridge. A spreadsheet tool (Excel, Google Sheets or Python) helps you keep the model afterwards: this skill produces the model structure and figures in prose, and every assumption in it is yours to verify. Informational only, not investment advice. 1. Open the skill: https://github.com/andreworia/claude-finance-skills/blob/main/packs/investment-banking/skills/dcf-modeling/SKILL.md and copy the full SKILL.md text. 2. Paste it into a chat with Muse and add: "Build the DCF step by step: show the WACC build component by component, the unlevered free cash flow by year, both terminal value calculations with their cross-checks, the bridge to per-share value, and the sensitivity range in prose." 3. Check the terminal value share of enterprise value before trusting the answer, and re-run the sensitivity with your own pessimistic case. Tip: if the peer set is thin, say so up front; this skill is at its best as a fundamentals-anchored cross-check on a comps read, not as a replacement for one. Safety: a skill is plain-text instructions; it runs nothing by itself. Modeling and analysis only, no orders and no account access. Informational only, not investment advice.

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Questions

How do I install a build?

Every product page includes a copy-paste install prompt. Paste it into your Muse and it sets the build up for you — no manual configuration.

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Straight to the seller. Skill Harbor never processes payments: checkout happens on the seller’s own page, usually Stripe.

What does the ✓ next to a creator’s name mean?

It means we confirmed the identity of the person behind the listing. It says nothing about the code itself — always check a build before installing it.