Value a company with a DCF
A discounted-cash-flow valuation with explicit forecasts, WACC, terminal value and sensitivity.
This is a practical, copy-paste process for estimating intrinsic value for an investment or acquisition.. Use it when you want a clear structure, then add your own details and the linked evidence.
Published by Deepstory Research. Reviewed Sep 2026.
How to use this method
- 1. Copy or downloadCopy the prompt below, or download the method file and attach it to your chat.
- 2. Paste into any AIChatGPT, Claude, Gemini or Copilot. Replace each [PLACEHOLDER] with your details, or let the AI ask you.
- 3. Add evidenceAttach the evidence files listed on this page so the AI works from sourced numbers, not guesses.
The prompt
Paste it as-is. The AI will ask for anything still in [BRACKETS].
# Value a company with a DCF Method by Deepstory Research: deepstoryresearch.com/method/dcf-valuation You are an investment-banking valuation associate. Follow the method below step by step. Goal: A discounted-cash-flow valuation with explicit forecasts, WACC, terminal value and sensitivity. ## My inputs - Company: [COMPANY] (example: attach financials) - Forecast horizon: [FORECAST_HORIZON] (example: 5 years) - Currency and market: [CURRENCY_AND_MARKET] (example: INR, listed in India) - Known guidance or targets: [KNOWN_GUIDANCE_OR_TARGETS] (example: management guidance) Before you start: if any input above is still in [BRACKETS] or missing, ask me for it in one short numbered list and wait. Do not guess. If I attached files (data, briefs, Deepstory evidence files), treat them as the primary source. ## Steps to follow 1. Forecast revenue, margins, capex, working capital and tax with stated drivers. 2. Compute unlevered free cash flow per year. 3. Estimate WACC; show cost of equity (risk-free, beta, premium) and cost of debt. 4. Compute terminal value (perpetuity growth and exit multiple) and compare. 5. Discount to enterprise value, bridge to equity value per share. 6. Sensitivity on WACC and terminal growth. ## Deliver the output in this structure - Forecast table - FCF build - WACC build - Terminal value - Valuation bridge - Sensitivity grid - Key judgements ## Quality rules - Terminal growth must not exceed long-run nominal GDP growth. - Label every market input with its date and source. - Terminal value share of EV above 75% must be flagged. - Label every number as FACT (with source and date), ESTIMATE (show the calculation) or ASSUMPTION. - If a Deepstory evidence file is attached, use its figures as the reference values and cite its source references; tag claims that are not from it as [UNVERIFIED]. - End with: the 3 assumptions that matter most, what would change the answer, and the single best next step.
What you need to give the AI
| Input | Placeholder | Example |
|---|---|---|
| Company | [COMPANY] | attach financials |
| Forecast horizon | [FORECAST_HORIZON] | 5 years |
| Currency and market | [CURRENCY_AND_MARKET] | INR, listed in India |
| Known guidance or targets | [KNOWN_GUIDANCE_OR_TARGETS] | management guidance |
Use it when
- Estimating intrinsic value for an investment or acquisition.
- Sanity-checking a valuation someone gave you.
What you get
- Forecast table
- FCF build
- WACC build
- Terminal value
- Valuation bridge
- Sensitivity grid
- Key judgements
The procedure, step by step
Read this before you run it, so you can check the AI actually followed the method.
Forecast revenue, margins, capex, working capital and tax with stated drivers.
Compute unlevered free cash flow per year.
Estimate WACC; show cost of equity (risk-free, beta, premium) and cost of debt.
Compute terminal value (perpetuity growth and exit multiple) and compare.
Discount to enterprise value, bridge to equity value per share.
Sensitivity on WACC and terminal growth.
Quality checks built into the prompt
- • Terminal growth must not exceed long-run nominal GDP growth.
- • Label every market input with its date and source.
- • Terminal value share of EV above 75% must be flagged.
- • Every number labelled FACT, ESTIMATE or ASSUMPTION; claims outside attached evidence tagged [UNVERIFIED].
Evidence to use with this method
Methods tell the AI how to think. Evidence gives it sourced numbers to think with. Download a context file and attach it with the prompt.
US Inflation & the Fed
The full 2026 inflation story on one page: the CPI path and category breakdown, the mid-year turn and the still-rising core PCE outlook, and the Fed’s rate response — fed funds, the 10-year Treasury, and the 30-year mortgage.
Six-Economy Macro Baseline
A common-country, common-period baseline for real growth, inflation, modeled unemployment and trade exposure across the United States, China, India, Germany, the United Kingdom and Japan.
Private Credit: A $1.2 Trillion Disagreement
Estimates of global private credit AUM differ by more than a trillion dollars. This index shows the spread rather than picking a number.
Run next
Methods that chain well after this one.
Deepstory methods are process guidance for AI tools. Review AI output before relying on it; legal, tax, medical and investment decisions need a qualified professional.