{{company_name}}
Company Name
Example: Example: Meridian Software Ltd.
Enter the company being valued.
Ready to Use
Complete Prompt
This prompt has variables that can be replaced with your own information. Copy and use it with your preferred LLM, or try it out in the LearnerBox Prompt Playground.
Act as a senior equity research and valuation analyst.
Develop a three-scenario discounted cash flow valuation using the information provided below.
Company:
{{company_name}}
Industry and business model:
{{industry_business_model}}
Historical financials:
{{historical_financials}}
Forecast assumptions:
{{forecast_assumptions}}
Capital structure and discount-rate inputs:
{{discount_rate_inputs}}
Terminal-value assumptions:
{{terminal_value_assumptions}}
Net debt and other adjustments:
{{net_debt_adjustments}}
Analysis requirements:
1. Confirm the valuation date, currency, forecast horizon, units, and enterprise-versus-equity valuation approach.
2. Build downside, base, and upside operating scenarios.
3. For each scenario, forecast:
- revenue;
- growth;
- gross margin;
- operating expenses;
- EBIT;
- tax;
- depreciation and amortization;
- capital expenditure;
- working capital;
- free cash flow to firm; and
- free cash flow margin.
4. Explain the operational drivers behind every material scenario difference.
5. Calculate enterprise value using:
- present value of forecast free cash flows; and
- terminal value.
6. Calculate terminal value using both:
- perpetual-growth method; and
- exit-multiple method, where appropriate inputs are supplied.
7. Reconcile terminal assumptions with mature growth, margin, reinvestment, and return-on-capital logic.
8. Calculate equity value by adjusting for:
- debt;
- cash;
- leases;
- minority interests;
- associates;
- pension deficits;
- non-operating assets;
- contingent liabilities; and
- diluted shares.
9. Produce:
- enterprise value;
- equity value;
- value per share;
- scenario probabilities, if supplied;
- weighted value, if appropriate; and
- valuation range.
10. Conduct sensitivity analysis for:
- WACC;
- terminal growth;
- exit multiple;
- revenue growth;
- operating margin; and
- capital intensity.
11. Identify the percentage of value represented by terminal value.
12. Compare valuation outputs with current market value only if supplied.
13. Do not invent market prices, beta, risk-free rates, equity risk premiums, debt costs, tax rates, or terminal assumptions.
14. Clearly separate supplied inputs, calculated outputs, analyst assumptions, and unresolved data gaps.
15. Do not present the output as an investment recommendation.
Present the result as:
{{output_format}}
Include:
- valuation assumptions;
- downside, base, and upside forecasts;
- free-cash-flow schedules;
- WACC calculation;
- terminal-value calculations;
- enterprise-to-equity bridge;
- value-per-share range;
- sensitivity tables;
- terminal-value dependence;
- key valuation drivers;
- major risks and limitations; and
- validation questions.Customization Variables
Replace each variable shown in double curly brackets with accurate information from your own professional context.
{{industry_business_model}}
Industry and Business Model
Example: Describe revenue streams, customers, pricing, margins, capital intensity, and competitive position.
Business-model context is essential for scenario and terminal assumptions.
{{historical_financials}}
Historical Financials
Example: Paste revenue, margins, taxes, D&A, capex, working capital, free cash flow, debt, and shares.
Provide several years of consistent historical data.
{{forecast_assumptions}}
Forecast Assumptions
Example: Provide downside, base, and upside assumptions for growth, margins, tax, capex, and working capital.
Clearly label which assumptions are approved and which remain provisional.
{{discount_rate_inputs}}
Capital Structure and Discount-Rate Inputs
Example: Provide debt, equity, beta, risk-free rate, equity risk premium, debt cost, tax rate, and target weights.
Use current, sourced, and internally consistent inputs.
{{terminal_value_assumptions}}
Terminal-Value Assumptions
Example: Provide perpetual growth, terminal margin, exit multiple, and mature return-on-capital assumptions.
Terminal assumptions should be economically plausible and internally consistent.
{{net_debt_adjustments}}
Net Debt and Other Adjustments
Example: List cash, debt, leases, pensions, minority interests, associates, contingencies, and diluted shares.
These adjustments bridge enterprise value to equity value.
{{output_format}}
Output Format
Choose the format required for analysis, modeling, or governance.
Expected Output
A complete three-scenario DCF valuation containing operating forecasts, free cash flows, WACC, terminal values, enterprise-to-equity bridge, sensitivities, valuation ranges, drivers, and limitations.
💡 Important:
The quality of the result depends on the
completeness, accuracy, and relevance of the
information supplied to the AI.
Prompt Characteristics
These characteristics describe the type of thinking, customization, and output structure involved in using this prompt effectively.
Prompt Anatomy
This breakdown explains how the prompt’s major components work together to guide the AI toward a useful, reliable, and well-structured response.
Role
Positions the AI as a senior valuation and equity-research analyst.
Context
Defines historicals, scenario forecasts, discount rates, terminal assumptions, and adjustments.
Task
Requires a complete three-scenario DCF from operating forecast to value per share.
Constraints
Prevents invented market data, discount-rate inputs, terminal assumptions, and recommendations.
Output Structure
Requires schedules, valuation bridges, sensitivities, drivers, limitations, and questions.
Input Variables
Company, business model, historicals, forecast assumptions, discount rates, terminal assumptions, adjustments, and output format.
Customization Tips
- Provide scenario-specific operating assumptions rather than only one forecast.
- Reconcile terminal growth and margins with mature return-on-capital economics.
- Include all enterprise-to-equity adjustments and diluted share effects.
- Review terminal-value dependence because excessive reliance may weaken the valuation.
- Use sensitivity tables to show how valuation changes with WACC and terminal assumptions.
Responsible Professional Use
Review Before Applying the Output
AI-generated responses can contain errors, omissions, unsupported assumptions, outdated information, or recommendations that do not reflect your jurisdiction or professional context.
Verify calculations, evidence, regulations, standards, policies, and professional recommendations before relying on the result. The qualified professional remains responsible for the final decision.