dcf-modelinglisted

# DCF Modeling Agent ## When to use Use this when you need an intrinsic value based on cash flows rather than a market read. Typical triggers: the peer set is thin or noisy, the business is undergoing a transition the multiples miss, or you want a fundamentals-anchored cross-check on comps. Reach for it when value should be driven by what the business generates, not what the market currently pays. ## What it does It produces a DCF: projected unlevered free cash flows discounted at WACC to an enterprise value, a terminal value computed two ways, an EV-to-equity bridge, and a sensitivity grid on WACC and growth. ## Method 1. Project unlevered free cash flow. Build FCF independent of financing. - Start from EBIT, tax it at the marginal rate to get NOPAT, add back D&A, subtract capex, and subtract the increase in net working capital, for each explicit year (usually 5 to 10). 2. Build the cost of equity via CAPM. Price the equity risk. - Cost of equity equals the risk-free rate plus beta times the equity risk premium; relever beta to the subject capital structure if it was drawn from peers. 3. Build the after-tax cost of debt. Reflect the tax shield. - After-tax cost of debt equals the pre-tax cost of debt times one minus the marginal tax rate. 4. Compute WACC. Blend the two at target weights. - Weight cost of equity by the equity share of capital and after-tax cost of debt by the debt share, using target or market weights rather than book values. 5. Compute ter