Business & Management
Advanced
Investment Valuation & Corporate Finance
Evaluating a business requires structured analysis of historical financial statements and future cash flows. This prompt constructs an advanced valuation model framework to help investors, founders, and finance professionals determine the intrinsic value of a company.
How to Run it
Paste the company's financial tables (or summarized financial metrics) and provide assumptions for future growth, discount rate, and tax rate.
Optimization Tips
- WACC Inputs: Define the cost of equity (Beta, Risk-Free Rate, Market Risk Premium) and cost of debt to get highly accurate WACC calculations.
- Growth Assumptions: State if the industry is cyclical or high-growth to adjust the terminal value assumptions correctly.
Customize Prompt Parameters
AI Prompt Blueprint
Act as a Senior Investment Banking Analyst. Analyze the following financial statements (Income Statement, Balance Sheet, Cash Flow Statement) for: [Insert Company Name/Financial Data]. Deliver: 1. A comprehensive horizontal and vertical analysis of the financial statements highlighting margins, growth rates, and leverage ratios. 2. A Discounted Cash Flow (DCF) valuation model outline, including calculations for WACC, Free Cash Flow to Firm (FCFF), Terminal Value (exit multiple and perpetuity growth methods), and implied equity value per share. 3. A sensitivity analysis table showing how the valuation changes based on varying discount rates (WACC) and terminal growth rates.