dcf-valuationlisted

# DCF Valuation > **This skill has been merged into `stock-valuation`.** Use `/us-stock-analysis:stock-valuation` for comprehensive valuation including full DCF modeling, WACC decomposition, 3-scenario sensitivity analysis, and comparable company analysis. --- ## Quick DCF Reference ### WACC Formula and Components ``` WACC = Ke × (E/V) + Kd × (D/V) Where: Ke = Cost of Equity = Rf + β × (Rm − Rf) + Size Premium Kd = After-Tax Cost of Debt = (Interest Expense / Total Debt) × (1 − Tax Rate) E/V = Equity Weight = Equity Market Cap / (Equity Market Cap + Total Debt) D/V = Debt Weight = Total Debt / (Equity Market Cap + Total Debt) Typical WACC Ranges by Risk Profile: Risk Profile WACC Range Examples ───────────────────────────────────────────────────── Low risk (utility) 6–8% Regulated utilities, large cap staples Medium risk 8–11% Large cap tech, established growth High risk 11–15% Small cap, emerging market, cyclical Very high risk 15–20%+ Early-stage, distressed, pre-revenue ``` ### Three-Scenario Names and Default Probabilities ``` Scenario Probability Narrative Bull 20% Market share gains, margin expansion, favorable macro Base 60% Historical trend continuation, guidance-aligned Bear 20% Competitive pressure, margin compression, macro headwinds Probability-Weighted IV = (20% × Bull IV) + (60% × Base IV) + (20% × Bear IV) ``