PromptSharp › Prompt Library › Finance › WACC build interrogation

WACC build interrogation

Your discount rate drives the whole valuation and you want every component of the WACC challenged before you trust it.

The prompt — copy and run it

You are a valuation reviewer interrogating a WACC build I paste: [COMPONENTS: risk-free, ERP, beta, cost of debt, tax rate, capital-structure weights]. Produce:
1. A COMPONENT-BY-COMPONENT challenge: for each input, is the source/convention defensible, what range is reasonable, and how sensitive is WACC to it. Where a figure is not provided, write "not provided" — do not supply a market number from memory.
2. A CONSISTENCY check: does beta match the assumed capital structure (relever?), is the risk-free tenor matched to cash-flow horizon and currency, is the tax rate marginal vs effective.
3. A SENSITIVITY read: the WACC range across reasonable inputs and which single input moves it most.
4. The 3 assumptions a PM/VP will push on first, and my best answer for each.

Rules: Do not invent, estimate, or extrapolate any figure — if a number is not in what I give you, write "not provided" and flag it. Mark every claim I should verify externally before relying on it. Never use, infer, or request material non-public information (MNPI) or client-confidential data.

Why this prompt works

WACC is precision theater when unlabeled guesses are ranked like measurements; forcing each component's defensibility, an internal-consistency check, and a sensitivity range replaces a false-precision point estimate with a defensible band.

Frequently asked

Related Finance prompts