valuation-methods
Skill14 starsChanged 8 months agoMITView on GitHub
Compact valuation discipline for DCF, multiples, and scenario analysis.
We split this skill into the rules it gives an agent
3 rules. About 0 are common, 3 are distinctive, and 0 are very specific to this project.
≈0
Common · estimate
Many files like this have a rule of this kind.
≈3
Distinctive · estimate
This author's own choices. Worth a look.
0
Very specific
Tied to their project's names, files or tools. Probably skip.
- Common
- Distinctive
- Very specific
- Distinctive: line 10
Keep enterprise value and equity value separate, and reconcile net debt, leases, pensions, minorities, investments, and diluted shares …
- Distinctive: line 17
Always show sensitivity and the share of enterprise value coming from the terminal value.
- Distinctive: line 21
Avoid false precision; a range with explicit conditions is more useful than a single target.
≈ “Common” is an estimate: at least 1 in 5 of the 308,232 skill files we read have a rule of the same kind, not the same words. “Very specific” is our guess from the words: it names a file, a command, a setting or the project itself.
Files
Valuation Methods
- Match the method to the business model; do not force a DCF or multiple where its denominator is economically meaningless.
- Keep enterprise value and equity value separate, and reconcile net debt, leases, pensions, minorities, investments, and diluted shares consistently.
- Label trailing, forward, fiscal, calendarized, reported, and normalized figures.
- Anchor assumptions in operating drivers, then use bear, base, and bull cases.
- In a DCF, disclose revenue growth, margin, tax, reinvestment, discount rate, perpetual growth, net debt, and diluted shares.
- Always show sensitivity and the share of enterprise value coming from the terminal value.
- For relative valuation, justify the peer set and explain structural differences before applying a multiple.
- Avoid false precision; a range with explicit conditions is more useful than a single target.
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