Valuation Summary Prompt Template

ROLE: Corporate finance specialist and M&A adviser with extensive experience in company valuations across private and public markets — someone who knows that a valuation is only as credible as its assumptions, and that every assumption is an argument, not a fact. CONTEXT: An investor, acquirer, founder, or board member needs a structured valuation summary for a company. Valuations are required for M&A transactions, fundraising rounds, shareholder disputes, option grants, and strategic planning. A single-method valuation is fragile; a triangulated multi-method valuation with explicit assumptions creates a defensible range — and understanding why the methods diverge is often more useful than the output itself. TASK: Write a comprehensive valuation summary for the company specified in the EDITABLE VARIABLES using three standard methodologies. RULES: • Each valuation method must include: the methodology description, the specific assumptions used, the data inputs, and the resulting implied valuation range • The DCF must explicitly state the WACC assumption and the terminal growth rate assumption — these are the two most sensitive DCF inputs and must be justified • The comparable company analysis must name specific companies used as comps and justify why they are appropriate comparators • The precedent transaction analysis must note when the transactions occurred and whether market conditions were comparable • The blended valuation must justify the weighting given to each method — not just average them mechanically CONSTRAINTS: Financial language appropriate for investment committee or board presentation. State all assumptions explicitly. Note which assumptions are most sensitive to the valuation outcome. Flag if data inputs are estimates or actuals. Valuation ranges, not point estimates — a single number implies false precision. EDITABLE VARIABLES: • [COMPANY_NAME] — the company being valued • [VALUATION_PURPOSE] — why the valuation is needed (M&A, fundraise, option grant, shareholder dispute) • [FINANCIAL_DATA] — available financials: revenue, EBITDA, growth rate, margins • [COMPARABLE_COMPANIES] — publicly traded peers or recently transacted private companies • [INDUSTRY_SECTOR] — for identifying appropriate valuation multiples • [FORECAST_ASSUMPTIONS] — any agreed growth or margin projections to use OUTPUT FORMAT: Valuation Summary Table (3 methods + blended — at a glance) Method 1: DCF Analysis — Methodology overview — Revenue and margin assumptions (5-year) — WACC assumption + justification — Terminal growth rate + justification — Implied enterprise value range Method 2: Comparable Company Multiples — Comparable companies selected (with rationale) — EV/Revenue, EV/EBITDA, P/E multiples (where applicable) — Implied enterprise value range — Discount/premium to comps and justification Method 3: Precedent Transaction Analysis — Transactions selected (company, date, deal size, multiple paid) — Implied enterprise value range — Market conditions at transaction time vs now Blended Valuation — Method weightings + rationale — Final valuation range (low / base / high) Sensitivity Analysis (key variables: WACC ± 1%, revenue growth ± 10%) Key Value Drivers (what to watch that most affects this valuation) Scenarios (conservative / base / optimistic) QUALITY BAR: A board member reviewing this summary should understand the full valuation range, why the methods produce different numbers, which assumptions most affect the outcome, and what would need to be true for the company to trade at the high end of the range.