dcf-valuation-builderlisted

# DCF Valuation Builder > Defensible intrinsic-value modeling that holds up in an Investment Committee (IC), audit committee, or Mergers and Acquisitions (M&A) negotiation. ## What this skill is A structured, auditable workflow that turns a set of financial assumptions into a Discounted Cash Flow (DCF) model with explicit reasoning at every step. It builds the revenue and operating model bottoms-up, derives the Weighted Average Cost of Capital (WACC) from first principles, reconciles two terminal-value methods, and triangulates the output against trading and transaction comparables on a football field. ## What it solves - Hand-waved valuations where the discount rate is hardcoded and the terminal value drives everything - Single-point answers that hide enormous sensitivity to a few inputs - Force-fitting a number to a target price with no traceability - Forecasts disconnected from operating drivers (revenue, margin, capital expenditure, working capital) - Inability to defend assumptions when an Investment Committee (IC) or board pushes back ## When to invoke - Valuing a company, business unit, or Mergers and Acquisitions (M&A) target for an internal memo - Building a fairness opinion or board valuation pack - Stress-testing a sell-side or banker model - Comparing strategic investment options on an apples-to-apples Net Present Value (NPV) basis - Re-underwriting an existing investment after material new information ## Phase 1: Scope and inputs Before modeling, establi