skills/dcf-model-builder/references/integrity-controls.md

# DCF Integrity Controls

Minimum checks: plan validates, all material assumptions have source ids, scenarios cover base/downside/upside, sensitivities are populated, WACC exceeds perpetual growth, bridge ties from EV to equity, shares are current, and output paths exist.

FCFF checks: NOPAT, D&A, capex, NWC, and unlevered FCF signs are coherent. FCFE checks: equity cash flow, net borrowing, and cost of equity are coherent.

Terminal checks: TV percent of EV, implied multiple, implied growth, and terminal margin/ROIC should be plausible. WACC checks: weights sum, beta and ERP are current, and cost of debt/tax rate are supportable.

Severity: hard failures block decision use; warnings allow senior review only when disclosed; informational checks are caveats.

Sign-off requires no unresolved hard failures, visible source posture, and an explicit model status in the response.