TASK-FIN-101-03 · Task family
Financial modeling & valuation repair. Spreadsheet modeling, DCF, forecasting and consistent statement linkages.
Overview. Correct the model's mechanical errors and report the revised valuation with each change explained.
A valuation model makes the target look attractive, but it contains errors: a terminal value formula, a discounting period and the bridge from enterprise to equity value.
The agent has to find the errors, fix them in the model and report the corrected valuation. Changing defensible assumptions to move the answer is not a fix.
Value to the buyer
Spreadsheet errors are routine in real models. Trains agents to repair mechanics without bending assumptions.
Specification. The task family, field by field.
- task_id:
- TASK-FIN-101-03
- domain:
- Investment Research & Valuation
- parent_environment:
- ENV-FIN-101 · Research & Valuation
- target_role:
- Investment Banking Analyst
- objective:
- Correct the model's mechanical errors and report the revised valuation with each change explained.
- starting_context:
- A spreadsheet DCF model, the target's financial statements and the transaction memo with the agreed assumptions.
- tools:
open_spreadsheetget_financial_statementsrun_financial_calculationsave_modelsubmit_research_artifact
- required_actions:
- Check statement linkages and the free cash flow build
- Check the terminal value formula and discount periods
- Check the enterprise-to-equity bridge
- Fix errors, keep the agreed assumptions, and explain each change
- expected_outputs:
- Corrected model
- Change log
- Revised valuation summary
- interaction:
- Single agent with a spreadsheet workspace.
- verification:
- The verifier recomputes the valuation from the agreed assumptions and checks each seeded error.
- reward:
- Credit per error fixed and for the revised valuation. Changing agreed assumptions costs credit.
- difficulty:
- Calibrated against reference models during acceptance testing
- task_horizon:
- Multi-step spreadsheet work. Execution limits are agreed with the buyer.
- delivery:
- Task instances with seeded models, reference corrections and verifier code.
- commercial_unit:
- Per validated task instance
Sample prompt. What the agent is asked to do, as a buyer would see it.
You have been given a DCF model for a proposed acquisition of Aster Manufacturing. The transaction memo fixes WACC at 9.0% and terminal growth at 2.5%, and year-five unlevered free cash flow is $80.0m. Net debt is $310.0m ($420.0m of debt less $110.0m of cash). The model indicates the target is attractively valued, but some of its mechanics are wrong. Find and correct the errors, keep the memo's assumptions, and report the revised valuation with an explanation of each change.
Verification criteria. What the verifier checks, and how.
Terminal value
Growth applied to year-five cash flow: 80.0 × 1.025 / (9.0% − 2.5%) = $1,261.5m.
Discounting
The terminal value is discounted five years, not four.
Equity bridge
Equity value is EV less $310.0m net debt. The model subtracted debt and added cash twice.
Assumptions kept
WACC and growth stay at the memo's values.
Linkages
Cash flow, balance sheet and income statement tie after the fixes.
Change log
Each fix is described with its effect on value.
Key failure modes. Where agents go wrong on this task.
- Raising WACC or cutting growth to bring the value down
- Fixing the terminal value but not its discount period
- Reporting a value without saving the corrected model
Other task families. The rest of Research & Valuation, on the same FinanceWorld state.
- TASK-FIN-101-01
Point-in-time company research
Financial retrieval, source attribution and evidence reconciliation, using only what was available at the cutoff.
Equity Research Analyst
- TASK-FIN-101-02
Statement normalization & quality of earnings
Accounting interpretation, normalization adjustments and numerical analysis.
Private Equity Associate
- TASK-FIN-101-04
Investment thesis & counter-evidence audit
Research synthesis, assumption testing and scenario analysis.
Equity Research Analyst