Financial Analysis & Valuation Expert-AI valuation and analysis

Example

Create common-size statements, compute historical ratios (ROIC, EBITDA margin, FCF conversion, liquidity metrics), identify nonrecurring items (gains, one-off legal settlements) and restate historical results to an ‘adjusted’ base for forecasts.

Scenario

A sell-side analyst adjusts FY2023 EBITDA to remove a $15M one-time asset-sale gain and an extraordinary restructuring charge when estimating sustainable margins for FY2024–FY2026.

Example

Build an integrated 3-statement model with driver-based inputs (unit volumes, pricing, churn, AR/AP days, capex as % of revenue) and scenario toggles (base / upside / downside).

Scenario

A SaaS company forecast uses ARR growth, logo churn and net revenue retention to derive revenue, then maps gross margin by product line, and projects capex and working capital to create FCF for valuation.

Example

Run a multi-stage DCF (explicit forecast + terminal value via Gordon growth or exit multiple), peer multiples (EV/EBITDA, P/FCF), and an LBO model to cross-check implied returns.

Scenario

An investment memo presents a DCF value range (sensitivity on WACC and long-term growth), a comps-based range trimmed for size/quality differences, and an LBO IRR test to ensure the valuation is not above private-market buyer economics.

Example

Calculate WACC using market-implied cost of equity (CAPM with beta unlever/relever), cost of debt (current yields and credit spreads), and target capital structure. Model the impact of alternative leverage on EPS, ROIC and covenant compliance.

Scenario

A corporate treasurer evaluates refinancing alternatives: the tool runs scenarios showing WACC change and EPS accretion/dilution under different debt interest rates and maturities.

Example

Create one-click sensitivity tables and tornado charts for value drivers (growth, margins, WACC) and run Monte Carlo simulations for probabilistic value distributions.

Scenario

During diligence a team stress tests a retail chain by simulating higher rent escalation and lower same-store sales to quantify downside breach risk on debt covenants and the effect on enterprise value.

Example

Compute interest coverage ratios, free-cash-flow to debt, DSCR and covenant headroom under base and stressed operating scenarios; highlight covenant breach likelihood and remediation options.

Scenario

A credit analyst assesses a leveraged borrower by projecting covenant compliance for the next 24 months under an economic slowdown scenario and recommending covenant amendments or preemptive liquidity facilities.

Example

Apply ratio decomposition, trend analysis, revenue-recognition diagnostics, cash vs. accrual comparisons and statistical checks (e.g., Benford’s Law) to flag suspicious items and quantify potential earnings adjustments.

Scenario

A forensic review flags an unexplained drop in DSO (days sales outstanding) accompanied by inventory build, prompting a targeted review of channel sales and return policies that uncovers channel stuffing.

Example

Generate valuation ranges, accretion/dilution analysis, pro-forma schedules, synergy estimates, and waterfall models for proceeds allocation. Prepare fairness-opinion style memos and management presentations.

Scenario

In an M&A sell-side process, the tool prepares a valuation pack showing a recommended price range supported by comps, DCF and precedent transactions, and models the post-deal pro-forma credit metrics for likely acquirers.

Example

Create peer sets, normalize for accounting differences, compute relative performance dashboards (growth, margins, ROE, capital efficiency) and overlay macro drivers (commodity prices, interest rates, FX).

Scenario

An equity analyst compares a mid-cap industrial to its peers across margin decomposition and capital intensity to identify differentiation (e.g., superior after-sales margins) that supports a premium multiple.

Example

Produce a concise investment thesis, risk checklist, sensitivity appendix, and slide deck or one-page executive summary suitable for investment committees or board review.

Scenario

After completing the model, the tool generates a 2-page investment memo that highlights the top three upside catalysts, top three downside risks, valuation range, and specific triggers for follow-up — ready for distribution to portfolio managers.