Is terminal value calculated via growth or multiples?

Both methods are supported: the Gordon Growth Model for perpetual growth and the Exit Multiple method based on market benchmarks.

Does it support relative valuation using peer groups?

Yes, it provides logic for applying median peer multiples (P/E, EV/EBITDA, etc.) to a target company's financial metrics to derive an implied value.

Can I perform sensitivity analysis on my valuations?

Yes, the skill includes frameworks for two-way sensitivity analysis, specifically focusing on the impact of WACC and terminal growth rate changes.

What valuation models are supported by this skill?

The skill supports Discounted Cash Flow (DCF), Dividend Discount Models (DDM), Comparable Multiples, Residual Income, and Sum-of-the-Parts (SOTP) valuation.

How does the skill calculate the cost of equity?

It uses the Capital Asset Pricing Model (CAPM), incorporating the risk-free rate, beta, and the equity risk premium.

Quantitative Valuation

Name: Quantitative Valuation
Author: JoelLewis

byJoelLewis

•

Data Science & ML

Estimates the intrinsic value of stocks and companies using discounted cash flow, dividend discount models, and comparable multiples.

The Quantitative Valuation skill provides a comprehensive framework for fundamental financial analysis, enabling users to determine the fair value of securities through rigorous mathematical models. It implements industry-standard methodologies including Discounted Cash Flow (DCF), Dividend Discount Models (DDM), and Residual Income analysis, supported by essential calculations like WACC and CAPM. By combining absolute valuation techniques with relative peer multiple comparisons and sensitivity analysis, this skill empowers analysts to stress-test assumptions and identify overvalued or undervalued assets with professional-grade precision.

Key Features

01Cost of capital calculations using WACC and CAPM frameworks

02Relative valuation through peer multiple analysis (P/E, EV/EBITDA, P/S, P/B)

03Dividend Discount Models (DDM) for various growth stages

04Sensitivity analysis to evaluate the impact of changing growth and discount rates

0518 GitHub stars

06Multi-stage Discounted Cash Flow (DCF) modeling with terminal value estimation

Use Cases

01Building detailed financial models for investment research or corporate finance projects

02Screening for undervalued securities by comparing current prices to intrinsic value estimates

03Performing deep-dive fundamental analysis to estimate a stock's fair value price

What are Skills?·How to Install

Install with 🐟 Skill.Fish

npx skillfish add joellewis/finance_skills quantitative-valuation

For use in Claude.ai and ChatGPT

Download Skill