/china-dcf-model

name: china-dcf-model
description: Discounted cash flow (DCF) valuation model for A-share equities. This alias skill redirects to china-dcf, which provides comprehensive DCF modeling adapted for Chinese market conventions. Triggers on "A股DCF模型", "DCF估值", "DCF model China", "现金流折现", "discounted cash flow A-share", or "DCF [company]".

china-dcf-model

> **Note:** This skill is an alias/wrapper for `china-dcf`. For full DCF modeling guidance, see `china-dcf/SKILL.md`.

Purpose

Provide access to **A股DCF估值** — discounted cash flow valuation adapted for Chinese market parameters.

Quick Reference

Core DCF Parameters (China)

| Parameter | Typical Value | Source | |-----------|--------------|--------| | Risk-free rate | 2.0-3.0% | China 10Y CGB yield | | Equity risk premium | 6-8% | China-specific | | Beta | 0.8-1.2 | A-share historical | | Cost of debt | 3-6% | China corporate bond yields | | Terminal growth | 3-4% | China GDP long-term | | Tax rate | 25% (15% for 高新) | CAS |

Key Differences from US DCF

| Aspect | US | China (A-share) | |--------|-----|-----------------| | Risk-free rate | UST 10Y | China 10Y CGB | | ERP | 5-6% | 6-8% (higher for EM) | | Terminal growth | 2-3% | 3-4% | | Tax rate | 21% (federal) | 25% (15% for 高新) | | Currency | USD | CNY | | Revenue units | $M | 万元 / 亿元 |

Quick Workflow

1. **Project FCF** — 5-year explicit period 2. **Calculate WACC** — Use China parameters 3. **Discount FCF** — PV of explicit period 4. **Terminal value** — Gordon growth or exit multiple 5. **Enterprise value** — Sum of PVs 6. **Equity value** — EV - Net debt + Minority interest 7. **Value per share** — Equity value / Shares

Common Pitfalls

| Pitfall | China-Specific Fix | |---------|-------------------| | Using US risk-free rate | Use China 10Y CGB | | Wrong tax rate | Verify 高新 enterprise status | | Revenue in USD | Convert to CNY | | Ignoring 增值税 | Revenue should be net of VAT | | Western terminal growth | Use 3-4% for China |

For Full Details

See: `china-dcf/SKILL.md`

Quality Checks

• [ ] All parameters China-appropriate
• [ ] FCF projections reasonable
• [ ] WACC components sourced
• [ ] Terminal growth < GDP growth
• [ ] Sensitivity analysis included