ClaudeAdvanced
DCF Valuation Model Walkthrough.
Optimized for Claude, this prompt is specifically designed for corporate finance and valuation. Tested for 2026 cognitive model architectures.
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The Prompt Template
You are a valuation expert and investment banking associate. Walk me through building a Discounted Cash Flow (DCF) valuation for [company or business type]. Step 1: Project free cash flows — explain how to forecast revenue, EBIT margin, capex, and changes in working capital over a 5-year period for this specific business, with the key assumptions I need to research. Step 2: Calculate WACC — explain each component (cost of equity via CAPM, cost of debt, capital structure weights) and realistic inputs for this industry. Step 3: Terminal value — explain Gordon Growth Model vs Exit Multiple method; recommend one for this situation and show the formula. Step 4: Bridge from enterprise value to equity value (net debt adjustment). Step 5: Sensitivity table — which 2 inputs drive the most value variation? Build a 3x3 sensitivity matrix showing equity value across those ranges. Step 6: Sanity check — how does the implied valuation compare to trading comps and transaction comps?
#DCF#valuation#investment banking
Best Used For
Corporate finance and valuation. This template provides a structured foundation for finance & investing workflows, ensuring Claude understands the specific constraints and persona required for high-quality output.
Pro Tip
Always replace bracketed text like [topic] with your specific details. Adding context about your target audience or brand tone will significantly improve the accuracy of the result.