dcf

Build a discounted cash flow (DCF) valuation for the company specified by the user: $ARGUMENTS

Before starting, read ../data-access.md for data access methods and ../design-system.md for formatting conventions. Follow the data access detection logic and design system throughout this skill.

Follow these steps:

1. Company Lookup

Look up the company by ticker using discover_companies. Capture:

• company_id
• latest_calendar_quarter — anchor for all period calculations below (see ../data-access.md Section 1.5)
• latest_fiscal_quarter
• Firm name for report attribution (default: "Daloopa") — see ../data-access.md Section 4.5

2. Market Data

Get market-side inputs for {TICKER} (see ../data-access.md Section 2 for how to source market data in your environment):

• Current price, market cap, shares outstanding, beta
• 10Y Treasury yield (risk-free rate for WACC)

If market data is unavailable, use reasonable defaults: beta=1.0, risk-free rate=4.5%, and note the assumptions.

3. Historical Financials from Daloopa

Calculate 8 quarters backward from latest_calendar_quarter. Pull:

• Revenue
• Operating Income
• Net Income
• Diluted EPS
• Operating Cash Flow
• Capital Expenditures
• Free Cash Flow (compute as OCF - CapEx, label "(calc.)")
• Depreciation & Amortization
• Tax expense and pre-tax income (for effective tax rate)
• Interest expense (for cost of debt)
• Total debt (short + long term)
• Cash and equivalents
• Shares outstanding

Also pull segment revenue and any available guidance series.

4. Calculate WACC

Cost of Equity (CAPM):

• Risk-free rate (Rf) = 10Y Treasury from market data
• Equity risk premium (ERP) = 5.5% (standard assumption)
• Beta from market data (or 1.0 default)
• Cost of equity = Rf + Beta × ERP

Cost of Debt:

• If interest expense and total debt available: Cost of debt = Interest Expense / Average Total Debt
• After-tax cost of debt = Cost of debt × (1 - effective tax rate)
• If not available, use 5.0% pre-tax as default