{ "schemaVersion": "deck-intelligence.v1", "id": "019de06f-28cb-7211-8997-56898cf5fd3f", "slug": "bfc2c26a8c29fb23775a386134299cd0", "title": "Bear Stearns | Investment Banking Pitch Book | 36 slides", "subtitle": "Bear Stearns · 2005-01", "author": "Bear Stearns", "date": "2005-01-01 00:00:00", "pageCount": 36, "kind": "consulting-deck", "orientation": "landscape", "aspectRatio": 1.294673, "document": { "id": "019de06f-28cb-7211-8997-56898cf5fd3f", "slug": "bfc2c26a8c29fb23775a386134299cd0", "title": "Bear Stearns | Investment Banking Pitch Book | 36 slides", "rawTitle": "Bear Stearns | Investment Banking Pitch Book | 36 slides", "authorId": "bear-stearns", "authorName": "Bear Stearns", "authorDisplay": "Bear Stearns", "kind": { "slug": "consulting-deck", "label": "Consulting deck" }, "sourceType": { "slug": "investment_bank", "label": "Investment bank" }, "fileName": "2005-01__bear-stearns__ib-pitchbook__bfc2c26a.pdf", "sourceUrl": "https://www.slidebook.io/company/bear-stearns/presentation/bfc2c26a8c29fb23775a386134299cd0/", "sourceDate": null, "presentationDate": "2005-01-01 00:00:00", "ingestedAt": "2026-04-30 22:07:54.675826+00", "status": "ready", "pageCount": 36, "orientation": "landscape", "aspectRatio": 1.294673, "targetCompany": null, "targetTicker": null, "metadata": { "corpus": "slidebook", "industry": "capital-markets", "local_root": "/Users/miguelsuredasuau/Desktop/lalalalla/_scrape/slidebook/decks/2005-01__bear-stearns__ib-pitchbook__bfc2c26a", "image_width": 1920, "image_format": "jpg", "deck_type_raw": "Investment Banking Pitch Book", "deck_type_slug": null, "source_url_pattern": "https://www.slidebook.io/company/{company_slug}/presentation/{deck_id}/" } }, "coverage": { "pageCount": 36, "pagesIndexed": 36, "pagesWithImages": 36, "pagesWithMetadata": 36, "imageCoveragePct": 100, "metadataCoveragePct": 100, "componentCount": 197, "chartCount": 0, "metricSlides": 0, "toolMatches": 19, "documentToolMatches": 0, "frameworkMatches": 14, "arcMatches": 1, "beatMatches": 4, "loopMatches": 2, "patternMatches": 0, "storymakersMatch": false, "scoreAvailable": true, "reviewAvailable": true, "activistThesisAvailable": false, "pitchdeckMetadataAvailable": false, "pitchdeckProfileAvailable": false }, "blocks": [], "matches": { "arcs": [ { "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null, "categoryName": "Strategy & Business", "categorySlug": "strategy-business" }, "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "evidence": "The document follows a structured approach to present a detailed DCF analysis, typical of a consultant's pitch.", "isPrimary": true, "confidence": 0.8, "extraction": { "at": "2026-07-16 22:04:28.856628+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": "doc-narrative-v1" } } ], "beats": [ { "to": 4, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null, "categoryName": "Strategy & Business", "categorySlug": "strategy-business" }, "from": 1, "name": "Situation & Context", "beatId": "6c3a5ad9-a806-4dd6-914e-6995111fe76d", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Situation & Context", "slug": "consultants-gambit-situation-context", "status": "active", "canonId": "019dd9b8-05ae-741b-992d-65ee83c639b3", "version": 1, "description": null }, "evidence": "The document starts with an appendix on methodology and a table of contents, setting the context for the DCF analysis.", "position": 0, "isPrimaryArc": true, "parentBeatType": { "name": "Setup", "slug": "setup", "status": "active", "canonId": "019dd9b8-020e-7505-af9b-d9b9a4679bcc", "version": 1, "description": "Where the deck grounds the reader before doing anything else. Almost every arc opens here." }, "alignedBlockIds": null, "matchConfidence": 0.8 }, { "to": 10, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null, "categoryName": "Strategy & Business", "categorySlug": "strategy-business" }, "from": 5, "name": "Problem & Complication", "beatId": "626e9de9-7e23-4de5-acf7-93e6d74402f2", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Problem & Complication", "slug": "consultants-gambit-problem-complication", "status": "active", "canonId": "019dd9b8-064a-777f-a374-e9a8c43dedd4", "version": 1, "description": null }, "evidence": "The document then delves into the advantages and disadvantages of DCF and cash flow projections, addressing potential complications.", "position": 1, "isPrimaryArc": true, "parentBeatType": { "name": "Complication", "slug": "complication", "status": "active", "canonId": "019dd9b8-0275-7709-b2d6-4f77c3fc7579", "version": 1, "description": "The point in the narrative where the audience should feel discomfort. Required for argumentative arcs." }, "alignedBlockIds": null, "matchConfidence": 0.8 }, { "to": 24, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null, "categoryName": "Strategy & Business", "categorySlug": "strategy-business" }, "from": 11, "name": "Evidence & Proof", "beatId": "75553425-a586-4b14-bbb5-81d2291f030e", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Evidence & Proof", "slug": "consultants-gambit-evidence-proof", "status": "active", "canonId": "019dd9b8-07b1-7688-8e1e-7637fec3802a", "version": 1, "description": null }, "evidence": "The document provides detailed methodologies for calculating the discount rate, cost of equity capital, and equity beta, serving as evidence and proof for the DCF analysis.", "position": 2, "isPrimaryArc": true, "parentBeatType": { "name": "Evidence", "slug": "evidence", "status": "active", "canonId": "019dd9b8-03f9-772a-b84a-4f07b415b77a", "version": 1, "description": "A dedicated proof beat exists in only ~4 arcs (Gambit, Sequoia, AIDA, Monroes). Other arcs embed evidence inline within development." }, "alignedBlockIds": null, "matchConfidence": 0.8 }, { "to": 36, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null, "categoryName": "Strategy & Business", "categorySlug": "strategy-business" }, "from": 25, "name": "Impact & Next Steps", "beatId": "b469779c-88a0-43b8-af3d-b8dac2f148a3", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Impact & Next Steps", "slug": "consultants-gambit-impact-next-steps", "status": "active", "canonId": "019dd9b8-0849-7728-9ee9-fd1609c4c655", "version": 1, "description": null }, "evidence": "The document concludes with examples of DCF analysis and a weighted average cost of capital calculation, illustrating the impact and next steps.", "position": 3, "isPrimaryArc": true, "parentBeatType": { "name": "Resolution", "slug": "resolution", "status": "active", "canonId": "019dd9b8-045d-703b-8dd7-e92aba3ba91b", "version": 1, "description": "How the deck ends. Required in 19/20 arcs. The exception (Sparkline) ends with new bliss which is functionally a resolution." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [ { "to": 15, "from": 11, "loop": { "name": "40_mece_breakdown", "slug": "40-mece-breakdown", "status": "active", "bestFor": "Problem structuring, ensuring completeness, strategic analysis", "canonId": "019dd956-763c-765e-8b68-6ee3ae1ef184", "version": 1, "bodyDocId": "019df22a-2420-77be-bc41-ded96d08cb21", "structure": "The Whole -> Category A (distinct) -> Category B (distinct) -> Category C (distinct) -> Complete Coverage", "description": "Divide a complex topic into mutually exclusive, collectively exhaustive categories", "familyLabel": null, "categoryName": "Consulting Framework", "categorySlug": "consulting-framework" }, "matchId": "9f6852b2-a1a3-435d-bb43-e037fea95334", "evidence": "The document provides a detailed breakdown of the cost of capital into its components.", "position": 0, "objective": "To break down the components of cost of capital", "confidence": 0.7, "extraction": { "at": "2026-07-16 22:04:29.027478+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": "doc-narrative-v1" } }, { "to": 28, "from": 24, "loop": { "name": "42_hypothesis_test", "slug": "42-hypothesis-test", "status": "active", "bestFor": "Strategy validation, due diligence, research presentations", "canonId": "019dd956-76fd-7577-8bcd-d7d39f7c13a8", "version": 1, "bodyDocId": "019df22a-2420-77be-bc41-ded96d08cb21", "structure": "The Hypothesis -> Test 1 (Supports/Refutes) -> Test 2 (Supports/Refutes) -> Conclusion (Validated/Pivoted)", "description": "State a hypothesis upfront, then systematically prove or disprove it with evidence", "familyLabel": null, "categoryName": "Consulting Framework", "categorySlug": "consulting-framework" }, "matchId": "5f28bbfa-1e61-48e1-b571-ef191a5fe9e2", "evidence": "The document presents methodologies for calculating terminal value and applying DCF to foreign investments, testing the hypothesis of DCF valuation.", "position": 1, "objective": "To test the hypothesis of DCF valuation", "confidence": 0.6, "extraction": { "at": "2026-07-16 22:04:29.063961+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": "doc-narrative-v1" } } ], "tools": [ { "tool": { "name": "Pyramid Principle", "slug": "pyramid-principle", "status": "active", "bestFor": "When the document has a single governing decision or recommendation the reader is asked to accept, and the case can be decomposed into a small number of clean groups. Strategy decks, board memos, investment committee papers.", "canonId": "019dd956-7cbd-7219-a477-c871e2bc1aff", "version": 1, "bodyDocId": "88b6ac56-b880-46f9-8621-ef3491ab6235", "description": "Lead with the answer; group three to five MECE supports beneath it; recurse one level down. Top-down hierarchical structure for any document with a single recommendation.", "familyLabel": null, "categoryName": "Block", "categorySlug": "block" }, "agent": "Architect", "layer": "slide", "agents": [ "Architect" ], "matchId": "f9951522-da0d-4104-80e5-cfaae23159ab", "evidence": "Four-step DCF process: Forecasting, Cost of Capital, Terminal Value, Results Interpretation", "pageRefs": null, "priority": "Core", "whenToUse": "When the document has a single governing decision or recommendation the reader is asked to accept, and the case can be decomposed into a small number of clean groups. Strategy decks, board memos, investment committee papers.", "confidence": 0.7, "extraction": { "at": "2026-07-17 03:29:50.551668+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 4, "whyItWorks": "Solves the two failure modes of expert communication at once: (1) the long climb where readers wait pages for the answer, and (2) logical mush from non-MECE groupings. Progressive disclosure lets a reader stop at any depth and get the right information.", "antipattern": "Chronological structure (\"what we did, what we found, what we conclude\") instead of logical hierarchy. Top-of-pyramid that is a topic (\"strategic options\") instead of an answer (\"pursue Option B because...\"). Non-MECE supports that overlap or fail to cover the universe.", "cardinality": null, "narrativePurpose": "Transfer conviction with minimum reader effort by mirroring how decision-makers consume information: answer first, scaffolding behind." }, { "tool": { "name": "Comparison frame", "slug": "comparison-frame", "status": "active", "bestFor": null, "canonId": "019dd9e1-484b-7399-a4fc-d14644b99f93", "version": 1, "bodyDocId": null, "description": "Two or more states/subjects placed side by side to expose a gap.", "familyLabel": null, "categoryName": null, "categorySlug": null }, "agent": null, "layer": "slide", "agents": null, "matchId": "b358fd31-8239-43c4-a5b2-26c23e843031", "evidence": "Advantages vs Disadvantages comparison table", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.8, "extraction": { "at": "2026-07-17 03:29:50.626315+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 5, "whyItWorks": null, "antipattern": null, "cardinality": "common", "narrativePurpose": null }, { "tool": { "name": "Table data", "slug": "table-data", "status": "active", "bestFor": null, "canonId": "019dd9e1-4fab-7168-a82f-b847350a006d", "version": 1, "bodyDocId": null, "description": "Tabular layouts of structured data.", "familyLabel": null, "categoryName": null, "categorySlug": null }, "agent": null, "layer": "slide", "agents": null, "matchId": "d1d98483-b3c2-4558-83e2-25b2325fe8dc", "evidence": "table/data: Earnings before interest and taxes (EBIT) | Consolidated operating income related to the subject operations.", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-17 03:29:50.759723+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 8, "whyItWorks": null, "antipattern": null, "cardinality": "common", "narrativePurpose": null }, { "tool": { "name": "Table data", "slug": "table-data", "status": "active", "bestFor": null, "canonId": "019dd9e1-4fab-7168-a82f-b847350a006d", "version": 1, "bodyDocId": null, "description": "Tabular layouts of structured data.", "familyLabel": null, "categoryName": null, "categorySlug": null }, "agent": null, "layer": "slide", "agents": null, "matchId": "b12cd03c-cade-4612-ba3b-2de9f8170fe8", "evidence": "table/data: Net income: Net income as reported.", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-17 03:29:50.827459+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 9, "whyItWorks": null, "antipattern": null, "cardinality": "common", "narrativePurpose": null }, { "tool": { "name": "Valuation: DCF", "slug": "dcf", "status": "active", "bestFor": null, "canonId": "019df269-2031-7273-9014-0c70beb91e11", "version": 1, "bodyDocId": "019df269-200e-76ea-8883-6ee35d39c836", "description": "You project free cash flows over an explicit forecast period (typically", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "817f8400-d8af-460a-bb00-8d2523f9bebb", "evidence": "Discounted Cash Flow Methodology", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-17 03:30:04.623506+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 12, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null }, { "tool": { "name": "2x2 matrix", "slug": "matrix-2x2", "status": "active", "bestFor": null, "canonId": "019dd9e1-50ab-72d1-8afb-3ab0a38e32a8", "version": 1, "bodyDocId": null, "description": "BCG matrix, importance/urgency, any axes-and-quadrants frame.", "familyLabel": null, "categoryName": null, "categorySlug": null }, "agent": null, "layer": "slide", "agents": null, "matchId": "47c16d06-fa45-467c-b3ad-c251759a2d8d", "evidence": "list/bullet: For companies that are not public, have short operational histories, restructured operations, or leverage that departs significantly from the industry average, it may be appropriate to use an industry average beta", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.7, "extraction": { "at": "2026-07-17 03:30:04.70508+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 13, "whyItWorks": null, "antipattern": null, "cardinality": "common", "narrativePurpose": null }, { "tool": { "name": "List presentation", "slug": "list-presentation", "status": "active", "bestFor": null, "canonId": "019dd9e1-4ef7-777d-ba68-9074c2b3bcf1", "version": 1, "bodyDocId": null, "description": "Bulleted, numbered, or checklist enumerations.", "familyLabel": null, "categoryName": null, "categorySlug": null }, "agent": null, "layer": "slide", "agents": null, "matchId": "c5b79f23-a571-4ec8-995a-a2af70797698", "evidence": "list/bullet: Predicted vs. Historical: Predicted betas based on a multi-factor risk model (i.e., BARRA betas) may be used.", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.8, "extraction": { "at": "2026-07-17 03:30:04.809044+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 14, "whyItWorks": null, "antipattern": null, "cardinality": "common", "narrativePurpose": null }, { "tool": { "name": "Audience Definition", "slug": "audience-definition", "status": "active", "bestFor": null, "canonId": "019dd956-7f2a-775d-aeee-ff099bcb7756", "version": 1, "bodyDocId": null, "description": "Six key questions: Who are they? What do they know? What do they believe? What do they care about? What do they fear? What decisions can they make?", "familyLabel": null, "categoryName": "Block", "categorySlug": "block" }, "agent": "Storyteller", "layer": "slide", "agents": [ "Storyteller" ], "matchId": "14e32bb0-43cc-4aa9-a2e4-d3ef0250337b", "evidence": "Proxy for the Market", "pageRefs": null, "priority": "Core", "whenToUse": null, "confidence": 0.6, "extraction": { "at": "2026-07-17 03:30:04.920407+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 15, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null }, { "tool": { "name": "Table data", "slug": "table-data", "status": "active", "bestFor": null, "canonId": "019dd9e1-4fab-7168-a82f-b847350a006d", "version": 1, "bodyDocId": null, "description": "Tabular layouts of structured data.", "familyLabel": null, "categoryName": null, "categorySlug": null }, "agent": null, "layer": "slide", "agents": null, "matchId": "61179e2d-9849-4997-adbe-eb520eff9067", "evidence": "table/data: Global Equity Betas table", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-17 03:30:05.086572+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 16, "whyItWorks": null, "antipattern": null, "cardinality": "common", "narrativePurpose": null }, { "tool": { "name": "Waterfall chart", "slug": "waterfall-chart", "status": "active", "bestFor": null, "canonId": "e2799da3-725f-44a9-a093-570f1f388e64", "version": 1, "bodyDocId": null, "description": null, "familyLabel": null, "categoryName": null, "categorySlug": null }, "agent": null, "layer": "slide", "agents": null, "matchId": "f7dcf404-ee05-4619-857c-f5cf74aa1d4d", "evidence": "βL = levered beta. βU = unlevered beta. D = market value of debt. E = market value of equity. T = marginal corporate tax rate.", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.7, "extraction": { "at": "2026-07-17 03:30:05.18268+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 17, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null }, { "tool": { "name": "Valuation: DCF", "slug": "dcf", "status": "active", "bestFor": null, "canonId": "019df269-2031-7273-9014-0c70beb91e11", "version": 1, "bodyDocId": "019df269-200e-76ea-8883-6ee35d39c836", "description": "You project free cash flows over an explicit forecast period (typically", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "5b97e2d7-9662-4610-b6a7-7ee6d2b73207", "evidence": "Application of DCF to Foreign Investments", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-16 23:19:28.25959+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 30, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null }, { "tool": { "name": "Valuation: DCF", "slug": "dcf", "status": "active", "bestFor": null, "canonId": "019df269-2031-7273-9014-0c70beb91e11", "version": 1, "bodyDocId": "019df269-200e-76ea-8883-6ee35d39c836", "description": "You project free cash flows over an explicit forecast period (typically", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "c6a196e6-70c6-4541-9965-7425511db96f", "evidence": "Other Exceptions to the General Application of DCF", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-16 23:19:28.3404+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 31, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null }, { "tool": { "name": "Valuation: DCF", "slug": "dcf", "status": "active", "bestFor": null, "canonId": "019df269-2031-7273-9014-0c70beb91e11", "version": 1, "bodyDocId": "019df269-200e-76ea-8883-6ee35d39c836", "description": "You project free cash flows over an explicit forecast period (typically", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "2562deea-7fc4-4597-ba7f-d0354251d47f", "evidence": "Adjusted Net Present Value takes into consideration changes to the capital structure", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-16 23:19:28.420712+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 32, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null }, { "tool": { "name": "Valuation: LBO math", "slug": "lbo-math", "status": "active", "bestFor": null, "canonId": "019df269-212c-732d-a38c-b9513acf723c", "version": 1, "bodyDocId": "019df269-2109-77fd-9ee6-fbbecf40d439", "description": "You model the target as if a private equity buyer were acquiring it,", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "70a3b1e3-aa36-450f-a3f9-e26d7dd4273f", "evidence": "To value a firm with a rapidly changing capital structure (i.e., an LBO)", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.7, "extraction": { "at": "2026-07-16 23:19:28.460696+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 32, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null }, { "tool": { "name": "Valuation: DCF", "slug": "dcf", "status": "active", "bestFor": null, "canonId": "019df269-2031-7273-9014-0c70beb91e11", "version": 1, "bodyDocId": "019df269-200e-76ea-8883-6ee35d39c836", "description": "You project free cash flows over an explicit forecast period (typically", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "90c2fc09-d4b6-4ef3-bb21-af85683bc2d8", "evidence": "Valuing Non-Cash Generating and Non-Operating Assets", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-16 23:19:28.540819+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 33, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null }, { "tool": { "name": "Valuation: DCF", "slug": "dcf", "status": "active", "bestFor": null, "canonId": "019df269-2031-7273-9014-0c70beb91e11", "version": 1, "bodyDocId": "019df269-200e-76ea-8883-6ee35d39c836", "description": "You project free cash flows over an explicit forecast period (typically", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "0e7d6fd8-b4f1-4450-8da9-9ad4ddf2d76a", "evidence": "Example of Discounted Cash Flow Analysis", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-16 23:19:28.62141+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 34, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null }, { "tool": { "name": "Valuation: DCF", "slug": "dcf", "status": "active", "bestFor": null, "canonId": "019df269-2031-7273-9014-0c70beb91e11", "version": 1, "bodyDocId": "019df269-200e-76ea-8883-6ee35d39c836", "description": "You project free cash flows over an explicit forecast period (typically", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "4f97306a-3c06-4ff3-99ac-42ee28001ca1", "evidence": "Example of Discounted Cash Flow Analysis (cont.)", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-16 23:19:28.701396+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 35, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null }, { "tool": { "name": "Valuation: DCF", "slug": "dcf", "status": "active", "bestFor": null, "canonId": "019df269-2031-7273-9014-0c70beb91e11", "version": 1, "bodyDocId": "019df269-200e-76ea-8883-6ee35d39c836", "description": "You project free cash flows over an explicit forecast period (typically", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "2d559a68-7f35-4f88-ab9e-539dc2c3b58c", "evidence": "Example Weighted Average Cost of Capital Calculation", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-16 23:19:28.836433+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 36, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null }, { "tool": { "name": "Valuation: LBO math", "slug": "lbo-math", "status": "active", "bestFor": null, "canonId": "019df269-212c-732d-a38c-b9513acf723c", "version": 1, "bodyDocId": "019df269-2109-77fd-9ee6-fbbecf40d439", "description": "You model the target as if a private equity buyer were acquiring it,", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "0f29801e-8775-4cb5-820d-7400707baf6f", "evidence": "WACC calculation steps showing cost of equity and after-tax cost of debt", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.7, "extraction": { "at": "2026-07-16 23:19:28.793182+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 36, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null } ], "frameworks": [ { "matchId": "c07ef986-c04c-47ca-b2eb-23c493851280", "evidence": "The entire slide describes the standard DCF valuation methodology.", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:03.76+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 4, "frameworkName": "Discounted Cash Flow" }, { "matchId": "4506176d-6f4f-4bcb-8371-39fe263ef687", "evidence": "The entire slide describes the DCF methodology and its variants (FCFF vs FCFCE).", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:00.9+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 7, "frameworkName": "Discounted Cash Flow" }, { "matchId": "0b2b89f8-eefd-4fcd-83db-e2093274d217", "evidence": "The slide explicitly details the top-down approach for calculating FCFF and FCFCE.", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:30:59.909+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 8, "frameworkName": "Discounted Cash Flow Methodology" }, { "matchId": "3d771146-896f-4426-95e4-eea56fcefe13", "evidence": "The slide title and content explicitly detail the DCF calculation steps.", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:00.63+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 9, "frameworkName": "Discounted Cash Flow Methodology" }, { "matchId": "f7a9c4b6-b8b7-49ac-8d11-67b983829b7c", "evidence": "Explicit formula provided for Weighted Average Cost of Capital", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:02.479+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 10, "frameworkName": "wacc-formula" }, { "matchId": "e28bef75-1dfa-41ad-8b61-5f8344098ac6", "evidence": "CAPM formula presentation", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:01.484+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 11, "frameworkName": "capital-allocation-framework" }, { "matchId": "2fc622f4-8076-4f65-ae39-3420db8dde24", "evidence": "Explicitly mentioned in the text as the framework for selecting the risk-free rate proxy.", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:04.55+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 12, "frameworkName": "CAPM" }, { "matchId": "842309c5-a0f2-4d77-9933-01b79d93d310", "evidence": "The slide presents a structured methodology for selecting inputs in a financial model.", "framework": null, "confidence": 0.8, "extraction": { "at": "2026-05-02 14:31:02.106+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 14, "frameworkName": "analytical-method" }, { "matchId": "20518cf1-8280-436f-9e81-c67b3063c9bc", "evidence": "The formulas provided for levering and unlevering beta are standard representations of the Hamada equation.", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:02.644+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 17, "frameworkName": "Hamada Equation" }, { "matchId": "dca7dac8-ea97-48ee-82ee-b1978a6bb75d", "evidence": "Side-by-side comparison of arithmetic and geometric mean methodologies.", "framework": null, "confidence": 0.9, "extraction": { "at": "2026-05-02 14:31:02.283+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 20, "frameworkName": "comparison-frame" }, { "matchId": "b3ea945e-6938-4ab1-a975-24ee9488a60f", "evidence": "Mentioned in text and footnote as the primary method for checking CAPM results.", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:09.287+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 24, "frameworkName": "Dividend Discount Model" }, { "matchId": "bf78f240-ef1e-41fe-b056-ebd8f484e1d7", "evidence": "Multiple tables showing impact of varying WACC and EBITDA exit multiples on valuation outputs.", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:08.534+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 34, "frameworkName": "sensitivity-analysis" }, { "matchId": "c110ef7c-caec-4b21-bb3e-71e8ae196a2d", "evidence": "Explicitly titled as DCF methodology and analysis.", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:06.312+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 35, "frameworkName": "Discounted Cash Flow Analysis" }, { "matchId": "d64fbac3-b5b1-41ab-bb2a-d3479ecbb036", "evidence": "Explicitly titled WACC calculation and sensitivity analysis.", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:11.972+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 36, "frameworkName": "WACC" } ], "patterns": [] }, "storymakers": null, "score": { "backend": "codex", "scoredAt": "2026-05-03 00:30:16.184+00", "subScores": { "scqa_arc": 22, "action_titles": 18, "mece_structure": 72, "closing_strength": 25, "evidence_quality": 78, "clarity_of_thesis": 38, "production_quality": 60, "visual_storytelling": 64 }, "totalScore": 47, "coveragePct": 100, "explanations": { "scqa_arc": "The flow reads as a technical primer rather than a Situation-Complication-Question-Answer story, with slides 4-36 moving through methods without narrative tension.", "action_titles": "Most titles are topic labels rather than insight claims, for example slide 6 is titled \"Cash Flow Projections\".", "mece_structure": "The deck is mostly organized around the DCF workflow from cash flows to discount rate, terminal value, exceptions, and examples, though repeated continuation slides blur section logic.", "closing_strength": "Slide 36 ends with an example WACC calculation rather than a recommendation, decision, call to action, or next-step plan.", "evidence_quality": "Methodological claims are well supported by formulas, sourced market-risk-premium data, sensitivity tables, and footnotes across slides 10-23 and 34-36.", "clarity_of_thesis": "Slides 1-5 establish the topic as DCF methodology, but they do not state a declarative central argument or recommendation.", "production_quality": "The deck shows disciplined finance formatting with formulas, tables, and footnotes, but weak action-title density and repeated \"cont.\" titles reduce consulting-story polish.", "visual_storytelling": "The deck uses appropriate finance tools such as formulas, comparison tables, sensitivity tables, and callouts on slides 10, 21, 32, and 34, but many slides remain list-heavy." }, "slidesAnalyzed": 36 }, "review": { "backend": "claude", "verdict": "A methodology reference primer dressed as a pitch book — competent as internal training material but a weak Storymakers exemplar because it has no thesis, no arc, and no action titles.", "reviewedAt": "2026-05-02 22:21:34.872+00", "slidesSeen": 36, "suggestions": [ "Rewrite every title as an action title — e.g. slide 12 'The Risk-Free Rate' becomes 'Use the 10-year Treasury as risk-free proxy despite duration mismatch'; slide 20 becomes 'Prefer arithmetic mean for forward-looking risk premia'", "Add a 3-slide opening act before slide 4: a stake-setting page ('Why DCF gets valuation wrong 40% of the time'), a complication ('Three inputs drive 80% of the variance'), and a thesis page that previews the recommendation", "Collapse the eight '(cont.)' slides into single-page arguments with a chart or table that earns the second page, or move overflow to a true appendix", "Replace the trailing example (slides 34-36) with a one-page synthesis ('Three rules for defensible DCF in this engagement') followed by next steps, then push the worked example to appendix", "Insert MECE section dividers (Inputs / Mechanics / Edge Cases / Application) so the reader has a mental map, rather than relying on a one-line TOC" ], "closingScore": 25, "openingScore": 22, "topStrengths": [ "Logical, exhaustive coverage of DCF mechanics — slides 6-33 form a coherent reference chain from cash-flow definition through terminal value and edge cases", "Methodological rigor: explicit formulas (slide 10 WACC, slide 11 CAPM, slide 15 adjusted beta) and sourcing (Ibbotson on slides 21-23) make it auditable", "Slide 5 'Advantages and Disadvantages of DCF' offers a rare moment of balanced framing in an otherwise one-directional deck" ], "topWeaknesses": [ "Zero action titles across 36 slides — the entire deck reads as a table of contents rather than a series of arguments", "No SCQA structure: there is no client situation, no complication driving the analysis, no question being answered, and no recommendation delivered", "Eight '(cont.)' continuation slides (15, 16, 19, 20, 21, 22, 23, 30, 35) signal topic overflow rather than discrete insights and are a Storymakers anti-pattern", "Closing slides 34-36 are raw sensitivity tables with no narrative wrap — the deck ends mid-spreadsheet" ], "narrativeScore": 28, "pillarCritique": "Section dividers are essentially absent (only slide 3 is a true divider for a single 'Overview' section), and the implicit pillars are topic buckets — Cost of Equity, Cost of Debt, Terminal Value — rather than MECE arguments that build toward a thesis.", "closingCritique": "The deck trails off into worked-example sensitivity tables (slides 34-36) with no synthesizing recommendation, no 'so what,' and no call to action. The final slide is a WACC calculation table — a reference exhibit, not a memorable close.", "openingCritique": "Slides 1-3 are title, a one-item TOC, and a section divider that all repeat 'Discounted Cash Flow' before slide 4 finally begins content. No thesis, no stakes, no hook — the reader is five pages in before encountering a single substantive idea, and even that is just a four-step process diagram.", "extractionSeconds": 75.593, "narrativeCritique": "There is no SCQA arc — the deck marches sequentially through DCF mechanics (overview, WACC, beta, MRP, cost of debt, terminal value, edge cases, worked example) like a textbook chapter. Setup and resolution acts are absent; tension and analysis collapse into a single 30-slide methodology dump.", "titleQualityScore": 18, "titleQualityCritique": "Every title is a noun-phrase topic label, not an action title — e.g. slide 12 'The Risk-Free Rate', slide 18 'The Market Risk Premium', slide 25 'Calculating the Cost of Debt Capital'. None states an insight or recommendation, and eight titles are literally '(cont.)' repetitions (slides 15, 16, 19, 20, 21, 22, 23, 30, 35)." }, "activistThesis": null, "pitchdeck": { "metadata": null, "profile": null }, "slides": [ { "page": 1, "type": "setup", "function": "present_framework", "imagePath": "https://imgproxy.kitesheet.com/0fTCFtM9dW7bULE_3G8hYY7CUzm4x3qmTaVfnSQthis/rs:fit:1200:1200:0/q:82/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy9iZmMyYzI2YThjMjlmYjIzNzc1YTM4NjEzNDI5OWNkMC9wMDAxLmpwZw", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "sparse", "densityScore": 3, "componentCount": 2, "textChars": 44, "nDataPoints": 0, "notes": null, "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:02.799+00", "seconds": 6.173, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/1", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-1", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.045, "w": 0.171, "x": 0.066, "y": 0.083 }, "kind": "image", "text": "BEAR STEARNS", "attrs": null, "canon": { "kind": { "name": "Image", "slug": "image", "status": "active", "canonId": "019de52c-f978-701f-a720-51d029d769e7", "version": 1, "description": "Photo, illustration, screenshot or icon." }, "tool": null, "subkind": { "name": "Logo", "slug": "logo", "status": "active", "canonId": "019de52c-fdaf-743d-94c4-d7c6a0e55302", "version": 1, "description": null }, "framework": null }, "subkind": "logo", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.799+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "26307105-9ec8-48aa-a5dc-bd757ce30edf", "parentComponentId": null }, { "bbox": { "h": 0.13, "w": 0.625, "x": 0.096, "y": 0.498 }, "kind": "title", "text": "Discounted Cash Flow Methodology", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.799+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "ce624b63-80d8-4628-94d0-501dc8cf6abf", "parentComponentId": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 4, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 1, "name": "Situation & Context", "beatId": "6c3a5ad9-a806-4dd6-914e-6995111fe76d", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Situation & Context", "slug": "consultants-gambit-situation-context", "status": "active", "canonId": "019dd9b8-05ae-741b-992d-65ee83c639b3", "version": 1, "description": null }, "evidence": "The document starts with an appendix on methodology and a table of contents, setting the context for the DCF analysis.", "position": 0, "isPrimaryArc": true, "parentBeatType": { "name": "Setup", "slug": "setup", "status": "active", "canonId": "019dd9b8-020e-7505-af9b-d9b9a4679bcc", "version": 1, "description": "Where the deck grounds the reader before doing anything else. Almost every arc opens here." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "thumbSrc": "https://imgproxy.kitesheet.com/HrSMGRs2fjRuu47cvFjVVm9Vqev0KqXeMNGibDqZ0rE/rs:fit:480:480:0/q:78/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy9iZmMyYzI2YThjMjlmYjIzNzc1YTM4NjEzNDI5OWNkMC9wMDAxLmpwZw", "imagePathAlt": "https://imgproxy.kitesheet.com/aZZhjFTMtDmLcNQmYqIgJqftMn5g2A-3047sxL7_zVA/rs:fit:1200:1200:0/q:82/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy9iZmMyYzI2YThjMjlmYjIzNzc1YTM4NjEzNDI5OWNkMC9wMDAxLnBuZw", "thumbSrcAlt": "https://imgproxy.kitesheet.com/QYXgclqC9wDNvCLDh6imxig6fvQIIl9kgnp6r6NUego/rs:fit:480:480:0/q:78/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy9iZmMyYzI2YThjMjlmYjIzNzc1YTM4NjEzNDI5OWNkMC9wMDAxLnBuZw" }, { "page": 2, "type": "setup", "function": "front_matter", "rawType": "table_of_contents", "block": null, "metadata": { "slideType": "table_of_contents", "slideTypeCanon": { "name": "Table of contents", "slug": "table_of_contents", "status": "active", "canonId": "019de52d-0643-721b-9b85-69676bb85cf8", "version": 1, "description": null }, "function": "front_matter", "functionCanon": { "name": "Front matter", "slug": "front_matter", "status": "active", "canonId": "019de52d-133d-73f0-9e26-201eda96b098", "version": 1, "description": null }, "density": "sparse", "densityScore": 7, "componentCount": 3, "textChars": 80, "nDataPoints": 0, "notes": null, "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:01.456+00", "seconds": 4.662, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/2", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-2", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.021, "w": 0.305, "x": 0.102, "y": 0.293 }, "kind": "list", "text": "1 Discounted Cash Flow Overview", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Numbered list", "slug": "numbered", "status": "active", "canonId": "019de52c-fcc0-7718-a284-a4250c805df2", "version": 1, "description": null }, "framework": null }, "subkind": "numbered", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:01.456+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "cb676e40-4bbc-4eb1-927f-4ae110ab15c3", "parentComponentId": null }, { "bbox": { "h": 0.021, "w": 0.296, "x": 0.102, "y": 0.18 }, "kind": "title", "text": "Table of Contents", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:01.456+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "ce600afa-1c6e-474a-acf4-575f0aa77e97", "parentComponentId": null }, { "bbox": { "h": 0.016, "w": 0.307, "x": 0.623, "y": 0.126 }, "kind": "title", "text": "Discounted Cash Flow Methodology", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Subtitle", "slug": "subtitle", "status": "active", "canonId": "019de52c-fb09-739d-900c-815b0d9ac526", "version": 1, "description": null }, "framework": null }, "subkind": "subtitle", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:01.456+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "19b44e08-1184-47d2-ba19-5ac248aeb977", "parentComponentId": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 4, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 1, "name": "Situation & Context", "beatId": "6c3a5ad9-a806-4dd6-914e-6995111fe76d", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Situation & Context", "slug": "consultants-gambit-situation-context", "status": "active", "canonId": "019dd9b8-05ae-741b-992d-65ee83c639b3", "version": 1, "description": null }, "evidence": "The document starts with an appendix on methodology and a table of contents, setting the context for the DCF analysis.", "position": 0, "isPrimaryArc": true, "parentBeatType": { "name": "Setup", "slug": "setup", "status": "active", "canonId": "019dd9b8-020e-7505-af9b-d9b9a4679bcc", "version": 1, "description": "Where the deck grounds the reader before doing anything else. Almost every arc opens here." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 3, "type": "setup", "function": "transition", "rawType": "section_divider", "block": null, "metadata": { "slideType": "section_divider", "slideTypeCanon": { "name": "Section divider", "slug": "section_divider", "status": "active", "canonId": "019de52d-066a-7402-9554-6ae504999041", "version": 1, "description": null }, "function": "transition", "functionCanon": { "name": "Transition", "slug": "transition", "status": "active", "canonId": "019de52d-1365-7149-92aa-66df859e75fd", "version": 1, "description": null }, "density": "sparse", "densityScore": 2, "componentCount": 2, "textChars": 38, "nDataPoints": 0, "notes": null, "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:02.501+00", "seconds": 5.607, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/3", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-3", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.06, "w": 0.6, "x": 0.095, "y": 0.565 }, "kind": "title", "text": "Discounted Cash Flow Overview", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.501+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "a1183a8e-69db-40ac-8a8c-0938df8cb897", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.08, "x": 0.095, "y": 0.508 }, "kind": "title", "text": "Section 1", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Subtitle", "slug": "subtitle", "status": "active", "canonId": "019de52c-fb09-739d-900c-815b0d9ac526", "version": 1, "description": null }, "framework": null }, "subkind": "subtitle", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.501+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "93d7caf0-72e1-4b50-8e05-985f009dc03b", "parentComponentId": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 4, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 1, "name": "Situation & Context", "beatId": "6c3a5ad9-a806-4dd6-914e-6995111fe76d", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Situation & Context", "slug": "consultants-gambit-situation-context", "status": "active", "canonId": "019dd9b8-05ae-741b-992d-65ee83c639b3", "version": 1, "description": null }, "evidence": "The document starts with an appendix on methodology and a table of contents, setting the context for the DCF analysis.", "position": 0, "isPrimaryArc": true, "parentBeatType": { "name": "Setup", "slug": "setup", "status": "active", "canonId": "019dd9b8-020e-7505-af9b-d9b9a4679bcc", "version": 1, "description": "Where the deck grounds the reader before doing anything else. Almost every arc opens here." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 4, "type": "setup", "title": "The slide outlines the standard DCF valuation methodology steps: forecasting, cost of capital, terminal value, and interpretation.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "dense", "densityScore": 59, "componentCount": 7, "textChars": 715, "nDataPoints": 0, "notes": "The slide outlines the standard DCF valuation methodology steps: forecasting, cost of capital, terminal value, and interpretation.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:03.76+00", "seconds": 6.768, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/4", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-4", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.43, "w": 0.81, "x": 0.095, "y": 0.338 }, "kind": "diagram", "text": "Four-step DCF process: Forecasting, Cost of Capital, Terminal Value, Results Interpretation", "attrs": null, "canon": { "kind": { "name": "Diagram", "slug": "diagram", "status": "active", "canonId": "019de52c-f9f0-734a-81de-15382ff28c65", "version": 1, "description": "Schematic or relational diagram." }, "tool": null, "subkind": { "name": "Process flow", "slug": "process", "status": "active", "canonId": "019de52d-039c-718f-ad3a-efe9c4b3c838", "version": 1, "description": null }, "framework": null }, "subkind": "process", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.76+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "5aeb2f69-e28e-4549-bd89-30eb97ded05b", "parentComponentId": null }, { "bbox": { "h": 0.18, "w": 0.19, "x": 0.545, "y": 0.415 }, "kind": "list", "text": "Estimating Terminal Value: Relationship between terminal value and cash flow, estimate terminal value, discount to present.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.76+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "17c5cf29-c850-47c1-8b44-2ae6d204a293", "parentComponentId": null }, { "bbox": { "h": 0.1, "w": 0.19, "x": 0.315, "y": 0.415 }, "kind": "list", "text": "Estimating Cost of Capital: Target capital structure, cost of equity, cost of non-equity sources.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.76+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "524f6693-7e29-4f0a-8e4f-8d835b16f9c6", "parentComponentId": null }, { "bbox": { "h": 0.1, "w": 0.19, "x": 0.765, "y": 0.415 }, "kind": "list", "text": "Calculating and Interpreting Results: Develop results, sensitivity analyses, interpret within context.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.76+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "557420b8-0b4e-4db5-b020-ef0660a09555", "parentComponentId": null }, { "bbox": { "h": 0.18, "w": 0.19, "x": 0.105, "y": 0.415 }, "kind": "list", "text": "Forecasting Free Cash Flow: Identify components, historical perspective, assumptions/scenarios, forecast horizon, prepare forecast.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.76+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "7b569bce-5188-4ff9-85d1-07b55e181d60", "parentComponentId": null }, { "bbox": { "h": 0.04, "w": 0.81, "x": 0.095, "y": 0.243 }, "kind": "paragraph", "text": "The DCF approach values a business based on its future expected cash flows discounted at a rate that reflects the riskiness of the cash flows.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.76+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "64908a4b-dc9f-4934-bf49-8c5625cdf08b", "parentComponentId": null }, { "bbox": { "h": 0.028, "w": 0.448, "x": 0.095, "y": 0.185 }, "kind": "title", "text": "Discounted Cash Flow Overview", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.76+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "1f94fe07-a5ed-484e-8400-48360a8752ac", "parentComponentId": null } ], "metrics": [], "tools": [ { "tool": { "name": "Pyramid Principle", "slug": "pyramid-principle", "status": "active", "bestFor": "When the document has a single governing decision or recommendation the reader is asked to accept, and the case can be decomposed into a small number of clean groups. Strategy decks, board memos, investment committee papers.", "canonId": "019dd956-7cbd-7219-a477-c871e2bc1aff", "version": 1, "bodyDocId": "88b6ac56-b880-46f9-8621-ef3491ab6235", "description": "Lead with the answer; group three to five MECE supports beneath it; recurse one level down. Top-down hierarchical structure for any document with a single recommendation.", "familyLabel": null, "categoryName": "Block", "categorySlug": "block" }, "agent": "Architect", "layer": "slide", "agents": [ "Architect" ], "matchId": "f9951522-da0d-4104-80e5-cfaae23159ab", "evidence": "Four-step DCF process: Forecasting, Cost of Capital, Terminal Value, Results Interpretation", "pageRefs": null, "priority": "Core", "whenToUse": "When the document has a single governing decision or recommendation the reader is asked to accept, and the case can be decomposed into a small number of clean groups. Strategy decks, board memos, investment committee papers.", "confidence": 0.7, "extraction": { "at": "2026-07-17 03:29:50.551668+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 4, "whyItWorks": "Solves the two failure modes of expert communication at once: (1) the long climb where readers wait pages for the answer, and (2) logical mush from non-MECE groupings. Progressive disclosure lets a reader stop at any depth and get the right information.", "antipattern": "Chronological structure (\"what we did, what we found, what we conclude\") instead of logical hierarchy. Top-of-pyramid that is a topic (\"strategic options\") instead of an answer (\"pursue Option B because...\"). Non-MECE supports that overlap or fail to cover the universe.", "cardinality": null, "narrativePurpose": "Transfer conviction with minimum reader effort by mirroring how decision-makers consume information: answer first, scaffolding behind." } ], "frameworks": [ { "matchId": "c07ef986-c04c-47ca-b2eb-23c493851280", "evidence": "The entire slide describes the standard DCF valuation methodology.", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:03.76+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 4, "frameworkName": "Discounted Cash Flow" } ], "arcBeats": [ { "to": 4, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 1, "name": "Situation & Context", "beatId": "6c3a5ad9-a806-4dd6-914e-6995111fe76d", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Situation & Context", "slug": "consultants-gambit-situation-context", "status": "active", "canonId": "019dd9b8-05ae-741b-992d-65ee83c639b3", "version": 1, "description": null }, "evidence": "The document starts with an appendix on methodology and a table of contents, setting the context for the DCF analysis.", "position": 0, "isPrimaryArc": true, "parentBeatType": { "name": "Setup", "slug": "setup", "status": "active", "canonId": "019dd9b8-020e-7505-af9b-d9b9a4679bcc", "version": 1, "description": "Where the deck grounds the reader before doing anything else. Almost every arc opens here." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 5, "type": "setup", "title": "The slide provides a balanced view of DCF, highlighting its flexibility versus its sensitivity to input assumptions.", "function": "compare_options", "rawType": "comparison_table", "block": null, "metadata": { "slideType": "comparison_table", "slideTypeCanon": { "name": "Comparison table", "slug": "comparison_table", "status": "active", "canonId": "019de52d-0a06-73f8-8813-fe022fab1de2", "version": 1, "description": null }, "function": "compare_options", "functionCanon": { "name": "Compare options", "slug": "compare_options", "status": "active", "canonId": "019de52d-167f-7038-aebc-70a9d2e0e33b", "version": 1, "description": null }, "density": "balanced", "densityScore": 46, "componentCount": 5, "textChars": 827, "nDataPoints": 0, "notes": "The slide provides a balanced view of DCF, highlighting its flexibility versus its sensitivity to input assumptions.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:03.29+00", "seconds": 6.195, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/5", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-5", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.2, "w": 0.4, "x": 0.51, "y": 0.43 }, "kind": "list", "text": "Extremely sensitive to cash flow projections which may be inherently difficult to predict, particularly as the projection horizon lengthens. Terminal value may be distorted by incorrect estimations of either cash flow or terminal multiples. Validity of the discount rate depends on assumptions for beta and the market risk premium.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.29+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "4b51f991-9864-4c65-ad29-faa1e6b6643c", "parentComponentId": null }, { "bbox": { "h": 0.2, "w": 0.4, "x": 0.095, "y": 0.43 }, "kind": "list", "text": "Provides an objective framework for assessing a company's risk and cash flows to estimate value. Requires users to think about key drivers of value. May be used when no “pure play” comparable companies are available.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.29+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "c5cadee6-f2b5-4174-9305-4984de446c05", "parentComponentId": null }, { "bbox": { "h": 0.08, "w": 0.8, "x": 0.095, "y": 0.24 }, "kind": "paragraph", "text": "DCF is more flexible than other valuation approaches in considering the unique circumstances of a company, but it is also very sensitive to estimates of cash flow, terminal value and the discount rate.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.29+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "d4a4afe3-e810-4a8d-92ae-e1a2ef92e250", "parentComponentId": null }, { "bbox": { "h": 0.3, "w": 0.8, "x": 0.095, "y": 0.38 }, "kind": "table", "text": "Advantages vs Disadvantages comparison table", "attrs": null, "canon": { "kind": { "name": "Table", "slug": "table", "status": "active", "canonId": "019de52c-f9c8-7148-8119-eaac9594cd28", "version": 1, "description": "Tabular data layout." }, "tool": null, "subkind": { "name": "Data table", "slug": "data", "status": "active", "canonId": "019de52d-02d5-75b8-8abf-88e92bf63569", "version": 1, "description": null }, "framework": null }, "subkind": "data", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.29+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "659b2615-332c-423a-9e1e-4250dff4fdb5", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.4, "x": 0.095, "y": 0.18 }, "kind": "title", "text": "Advantages and Disadvantages of DCF", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.29+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "baf48b25-821c-4c5e-9130-d3d4b07e5889", "parentComponentId": null } ], "metrics": [], "tools": [ { "tool": { "name": "Comparison frame", "slug": "comparison-frame", "status": "active", "bestFor": null, "canonId": "019dd9e1-484b-7399-a4fc-d14644b99f93", "version": 1, "bodyDocId": null, "description": "Two or more states/subjects placed side by side to expose a gap.", "familyLabel": null, "categoryName": null, "categorySlug": null }, "agent": null, "layer": "slide", "agents": null, "matchId": "b358fd31-8239-43c4-a5b2-26c23e843031", "evidence": "Advantages vs Disadvantages comparison table", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.8, "extraction": { "at": "2026-07-17 03:29:50.626315+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 5, "whyItWorks": null, "antipattern": null, "cardinality": "common", "narrativePurpose": null } ], "frameworks": [], "arcBeats": [ { "to": 10, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 5, "name": "Problem & Complication", "beatId": "626e9de9-7e23-4de5-acf7-93e6d74402f2", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Problem & Complication", "slug": "consultants-gambit-problem-complication", "status": "active", "canonId": "019dd9b8-064a-777f-a374-e9a8c43dedd4", "version": 1, "description": null }, "evidence": "The document then delves into the advantages and disadvantages of DCF and cash flow projections, addressing potential complications.", "position": 1, "isPrimaryArc": true, "parentBeatType": { "name": "Complication", "slug": "complication", "status": "active", "canonId": "019dd9b8-0275-7709-b2d6-4f77c3fc7579", "version": 1, "description": "The point in the narrative where the audience should feel discomfort. Required for argumentative arcs." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 6, "type": "setup", "title": "Part of a Bear Stearns DCF Primer deck.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "dense", "densityScore": 51, "componentCount": 5, "textChars": 1226, "nDataPoints": 0, "notes": "Part of a Bear Stearns DCF Primer deck.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:00.409+00", "seconds": 3.294, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/6", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-6", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.06, "w": 0.85, "x": 0.12, "y": 0.475 }, "kind": "list", "text": "The forecast horizon should generally reflect the time it takes for a company to achieve stable growth, stable capital structure or an end to restructuring.\nThe forecast period should not extend beyond such time frame as the company can reasonably project.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:00.409+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "1b696bd2-94d4-433d-a388-984b57149e65", "parentComponentId": null }, { "bbox": { "h": 0.25, "w": 0.88, "x": 0.095, "y": 0.298 }, "kind": "list", "text": "Use a realistic management case which has been thoroughly diligenced.\nForecast favorable and unfavorable scenarios as sensitivity cases, and probability weight each scenario to achieve expected value.\nIf practical, the forecast horizon should reflect the time it takes for the firm to reach a “steady state.”\nSince cash flows are generated over the course of each year (rather than at the end of each year), the cash flows during each year of the forecast should be discounted back from the mid-year to time zero for non-seasonal businesses.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:00.409+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "42a305be-3099-49fe-8822-bf0d30294479", "parentComponentId": null }, { "bbox": { "h": 0.06, "w": 0.85, "x": 0.12, "y": 0.685 }, "kind": "list", "text": "Assumes that cash flows occur at the mid-point of each year and, consequently, cash flows in year 1 are discounted ½ year, cash flows in year 2 are discounted 1½ years, etc.\nFor certain industries characterized by greater seasonality, an end-of-year discounting convention (or other reasonable assumption) may be more appropriate.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:00.409+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "678386ce-475e-45bd-ac3a-0feb03356fe6", "parentComponentId": null }, { "bbox": { "h": 0.022, "w": 0.735, "x": 0.095, "y": 0.243 }, "kind": "paragraph", "text": "Discounted cash flow analysis is extremely sensitive to cash flow projections.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:00.409+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "44423dbd-af18-43fe-be41-c92a1c873f98", "parentComponentId": null }, { "bbox": { "h": 0.025, "w": 0.338, "x": 0.095, "y": 0.18 }, "kind": "title", "text": "Cash Flow Projections", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:00.409+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "c37e2c92-aa5d-424b-9080-8733bf3116eb", "parentComponentId": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 10, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 5, "name": "Problem & Complication", "beatId": "626e9de9-7e23-4de5-acf7-93e6d74402f2", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Problem & Complication", "slug": "consultants-gambit-problem-complication", "status": "active", "canonId": "019dd9b8-064a-777f-a374-e9a8c43dedd4", "version": 1, "description": null }, "evidence": "The document then delves into the advantages and disadvantages of DCF and cash flow projections, addressing potential complications.", "position": 1, "isPrimaryArc": true, "parentBeatType": { "name": "Complication", "slug": "complication", "status": "active", "canonId": "019dd9b8-0275-7709-b2d6-4f77c3fc7579", "version": 1, "description": "The point in the narrative where the audience should feel discomfort. Required for argumentative arcs." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 7, "type": "setup", "title": "This slide outlines the technical mechanics of DCF valuation, including the treatment of debt, convertibles, and dividend policy consistency.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "balanced", "densityScore": 46, "componentCount": 4, "textChars": 1551, "nDataPoints": 0, "notes": "This slide outlines the technical mechanics of DCF valuation, including the treatment of debt, convertibles, and dividend policy consistency.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:00.9+00", "seconds": 3.718, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/7", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-7", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.25, "w": 0.79, "x": 0.12, "y": 0.48 }, "kind": "list", "text": "Under this approach, FCF to the Firm (“FCFF”) are discounted at the Weighted Average Cost of Capital (“WACC”).\nThe value of the debt can be estimated by the lesser of market value or book value.\nIn-the-money convertibles should not be included as debt for this calculation since they are assumed to have been converted.\nIf the dividend payout ratio changes, operating performance (and cash flows) should also change.\nIf all free cash flows are assumed to be distributed to shareholders, make sure that retained earnings are not double-counted by reinvesting cash.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:00.9+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "2901cb7c-ab05-4480-b4e1-bd7895b1993e", "parentComponentId": null }, { "bbox": { "h": 0.45, "w": 0.82, "x": 0.09, "y": 0.31 }, "kind": "list", "text": "The approach of measuring free cash flows to the unlevered firm permits us to ascertain the operating value of a firm independent of its capital structure.\nProvides a greater degree of analytical flexibility.\nThe value of equity is calculated as the value of the firm’s operations less the value of its net debt and other non-equity claims such as preferred stock and minority interests.\nAlternatively, the DCF template is sufficiently flexible to calculate a company’s equity value from the FCF to Common Equity (“FCFCE”) after deducting after-tax debt service, preferred dividends and changes in debt, preferred stock and minority interest. Under this approach, FCFCE are discounted at the Cost of Equity (“KE”).\nIn general, make sure the subject company’s dividend policy is consistent with the discount rate and cash flow assumptions.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:00.9+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "c3566e80-00d2-4a5f-8e24-a88807cc22d3", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.82, "x": 0.09, "y": 0.23 }, "kind": "paragraph", "text": "An approach to calculate the unlevered value of the firm is to use after-tax, “debt-free,” nominal Free Cash Flows to the Firm.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:00.9+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "a7c1573b-4933-4181-8ccb-fabdfbf522c8", "parentComponentId": null }, { "bbox": { "h": 0.04, "w": 0.38, "x": 0.09, "y": 0.17 }, "kind": "title", "text": "Free Cash Flow Approach", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:00.9+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "ebfeefc1-c5af-4c66-b97a-0330032c94a6", "parentComponentId": null } ], "metrics": [], "tools": [], "frameworks": [ { "matchId": "4506176d-6f4f-4bcb-8371-39fe263ef687", "evidence": "The entire slide describes the DCF methodology and its variants (FCFF vs FCFCE).", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:00.9+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 7, "frameworkName": "Discounted Cash Flow" } ], "arcBeats": [ { "to": 10, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 5, "name": "Problem & Complication", "beatId": "626e9de9-7e23-4de5-acf7-93e6d74402f2", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Problem & Complication", "slug": "consultants-gambit-problem-complication", "status": "active", "canonId": "019dd9b8-064a-777f-a374-e9a8c43dedd4", "version": 1, "description": null }, "evidence": "The document then delves into the advantages and disadvantages of DCF and cash flow projections, addressing potential complications.", "position": 1, "isPrimaryArc": true, "parentBeatType": { "name": "Complication", "slug": "complication", "status": "active", "canonId": "019dd9b8-0275-7709-b2d6-4f77c3fc7579", "version": 1, "description": "The point in the narrative where the audience should feel discomfort. Required for argumentative arcs." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 8, "type": "setup", "title": "This slide outlines the standard financial modeling steps for deriving FCFF and FCFCE from EBIT.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "balanced", "densityScore": 36, "componentCount": 2, "textChars": 1201, "nDataPoints": 0, "notes": "This slide outlines the standard financial modeling steps for deriving FCFF and FCFCE from EBIT.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:30:59.909+00", "seconds": 2.587, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/8", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-8", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.6, "w": 0.86, "x": 0.07, "y": 0.26 }, "kind": "table", "text": "Earnings before interest and taxes (EBIT) | Consolidated operating income related to the subject operations. Subtract adjusted taxes | Calculated by multiplying the marginal tax rate by EBIT... Add depreciation and amortization | Includes all depreciation and amortization subtracted from EBITDA to arrive at EBIT. Subtract (add) increases (decrease) in working capital | Includes changes in accounts receivable, inventory... Subtract capital expenditures | Going forward, should include one-time, non-recurring cash flows... Equals free cash flows to the unlevered firm (FCFF) | Cash flows are available to both debt and equity holders. Subtract cash interest paid | May differ from interest expense due to non-cash interest charges. Add interest tax shield | Calculated by multiplying marginal tax rate by interest expense. Add (subtract) increases (decreases) in debt, preferred stock and minority interest | Increases in non-common equity sources of capital... Subtract preferred dividends | Any cash payments to non-common equity claimholders... Equals free cash flows to the common equity (FCFCE) | Cash flows are available only to common equity holders.", "attrs": null, "canon": { "kind": { "name": "Table", "slug": "table", "status": "active", "canonId": "019de52c-f9c8-7148-8119-eaac9594cd28", "version": 1, "description": "Tabular data layout." }, "tool": null, "subkind": { "name": "Data table", "slug": "data", "status": "active", "canonId": "019de52d-02d5-75b8-8abf-88e92bf63569", "version": 1, "description": null }, "framework": null }, "subkind": "data", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:30:59.909+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "d2e9ef46-36a4-4617-ad9e-ef37771a7178", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.5, "x": 0.09, "y": 0.18 }, "kind": "title", "text": "Defining Free Cash Flow—Top-Down Approach", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:30:59.909+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "ed4e3155-2eee-426b-a7e2-a3a3266a0621", "parentComponentId": null } ], "metrics": [], "tools": [ { "tool": { "name": "Table data", "slug": "table-data", "status": "active", "bestFor": null, "canonId": "019dd9e1-4fab-7168-a82f-b847350a006d", "version": 1, "bodyDocId": null, "description": "Tabular layouts of structured data.", "familyLabel": null, "categoryName": null, "categorySlug": null }, "agent": null, "layer": "slide", "agents": null, "matchId": "d1d98483-b3c2-4558-83e2-25b2325fe8dc", "evidence": "table/data: Earnings before interest and taxes (EBIT) | Consolidated operating income related to the subject operations.", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-17 03:29:50.759723+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 8, "whyItWorks": null, "antipattern": null, "cardinality": "common", "narrativePurpose": null } ], "frameworks": [ { "matchId": "0b2b89f8-eefd-4fcd-83db-e2093274d217", "evidence": "The slide explicitly details the top-down approach for calculating FCFF and FCFCE.", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:30:59.909+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 8, "frameworkName": "Discounted Cash Flow Methodology" } ], "arcBeats": [ { "to": 10, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 5, "name": "Problem & Complication", "beatId": "626e9de9-7e23-4de5-acf7-93e6d74402f2", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Problem & Complication", "slug": "consultants-gambit-problem-complication", "status": "active", "canonId": "019dd9b8-064a-777f-a374-e9a8c43dedd4", "version": 1, "description": null }, "evidence": "The document then delves into the advantages and disadvantages of DCF and cash flow projections, addressing potential complications.", "position": 1, "isPrimaryArc": true, "parentBeatType": { "name": "Complication", "slug": "complication", "status": "active", "canonId": "019dd9b8-0275-7709-b2d6-4f77c3fc7579", "version": 1, "description": "The point in the narrative where the audience should feel discomfort. Required for argumentative arcs." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 9, "type": "setup", "title": "The slide uses a structured list format to define financial accounting adjustments.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "balanced", "densityScore": 40, "componentCount": 2, "textChars": 2192, "nDataPoints": 0, "notes": "The slide uses a structured list format to define financial accounting adjustments.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:00.63+00", "seconds": 3.025, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/9", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-9", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.65, "w": 0.86, "x": 0.07, "y": 0.25 }, "kind": "table", "text": "Net income: Net income as reported. Add (subtract) non-cash expenses (income): Includes depreciation and amortization, deferred taxes, and other non-cash items but excludes non-cash interest expense. Subtract (add) increases (decreases) in working capital: Includes changes in accounts receivable, inventory, prepaid expenses, accounts payable, accrued liabilities, etc. In some cases, it may be appropriate to include as working capital the minimum amount of cash necessary for operational purposes. Equals adjusted cash flows from operations. Add interest expense: Includes non-cash interest expense. As long as you assume that initial excess cash and all interim cash flows are distributed to shareholders (i.e., no cash other than minimum cash balances accumulates in the forecast period), it is appropriate to exclude interest income on excess cash balances from the free cash flow calculation. Subtract interest tax shield: Calculated by multiplying the marginal tax rate by interest expense. If the company has NOLs or is not expected to be a taxpayer within the forecast horizon, there should be no interest tax shield. Subtract capital expenditures: Going forward, should include one-time, non-recurring cash flows to the extent they are planned. Equals free cash flows to the unlevered firm (FCFF): Cash flows are available to both debt and equity holders. Subtract cash interest paid: May differ from interest expense due to non-cash interest charges. Add interest tax shield: Calculated by multiplying marginal tax rate by interest expense. Add (subtract) increases (decreases) in debt, preferred stock and minority interest: Increases in non-common equity sources of capital, net of principal repayments, result in greater cash for common equity holders. Subtract preferred dividends: Any cash payments to non-common equity claimholders results in less cash to common equity holders. Equals free cash flows to the common equity (FCFCE): Cash flows are available only to common equity holders. Assumes that all cash flows to the common equity are distributed (i.e., not reinvested) to ensure that retained earnings are not double-counted.", "attrs": null, "canon": { "kind": { "name": "Table", "slug": "table", "status": "active", "canonId": "019de52c-f9c8-7148-8119-eaac9594cd28", "version": 1, "description": "Tabular data layout." }, "tool": null, "subkind": { "name": "Data table", "slug": "data", "status": "active", "canonId": "019de52d-02d5-75b8-8abf-88e92bf63569", "version": 1, "description": null }, "framework": null }, "subkind": "data", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:00.63+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "9149cca9-73a8-4dcb-8a2e-7e4b5df1b828", "parentComponentId": null }, { "bbox": { "h": 0.04, "w": 0.6, "x": 0.09, "y": 0.17 }, "kind": "title", "text": "Defining Free Cash Flow—Bottom-Up Approach", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:00.63+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "24ee5ba7-6f6c-489a-9d5a-cff340a79d7e", "parentComponentId": null } ], "metrics": [], "tools": [ { "tool": { "name": "Table data", "slug": "table-data", "status": "active", "bestFor": null, "canonId": "019dd9e1-4fab-7168-a82f-b847350a006d", "version": 1, "bodyDocId": null, "description": "Tabular layouts of structured data.", "familyLabel": null, "categoryName": null, "categorySlug": null }, "agent": null, "layer": "slide", "agents": null, "matchId": "b12cd03c-cade-4612-ba3b-2de9f8170fe8", "evidence": "table/data: Net income: Net income as reported.", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-17 03:29:50.827459+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 9, "whyItWorks": null, "antipattern": null, "cardinality": "common", "narrativePurpose": null } ], "frameworks": [ { "matchId": "3d771146-896f-4426-95e4-eea56fcefe13", "evidence": "The slide title and content explicitly detail the DCF calculation steps.", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:00.63+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 9, "frameworkName": "Discounted Cash Flow Methodology" } ], "arcBeats": [ { "to": 10, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 5, "name": "Problem & Complication", "beatId": "626e9de9-7e23-4de5-acf7-93e6d74402f2", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Problem & Complication", "slug": "consultants-gambit-problem-complication", "status": "active", "canonId": "019dd9b8-064a-777f-a374-e9a8c43dedd4", "version": 1, "description": null }, "evidence": "The document then delves into the advantages and disadvantages of DCF and cash flow projections, addressing potential complications.", "position": 1, "isPrimaryArc": true, "parentBeatType": { "name": "Complication", "slug": "complication", "status": "active", "canonId": "019dd9b8-0275-7709-b2d6-4f77c3fc7579", "version": 1, "description": "The point in the narrative where the audience should feel discomfort. Required for argumentative arcs." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 10, "type": "setup", "title": "The slide provides the WACC formula and defines its components, along with guidance on its application in M&A contexts and capital structure assumptions.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "overcrowded", "densityScore": 80, "componentCount": 9, "textChars": 1376, "nDataPoints": 0, "notes": "The slide provides the WACC formula and defines its components, along with guidance on its application in M&A contexts and capital structure assumptions.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:02.479+00", "seconds": 4.737, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/10", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-10", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.03, "w": 0.35, "x": 0.17, "y": 0.46 }, "kind": "framework", "text": "WACC = KE (E/V) + KD (1-T) (D/V) + KP (P/V)", "attrs": null, "canon": { "kind": { "name": "Framework", "slug": "framework", "status": "active", "canonId": "019de52c-fa18-77c6-b10a-ccb8277ac0fa", "version": 1, "description": "Named conceptual framework instance." }, "tool": null, "subkind": { "name": "Framework instance", "slug": "instance", "status": "active", "canonId": "019de52d-05a2-72af-be0b-7edc60708a03", "version": 1, "description": null }, "framework": null }, "subkind": "instance", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.479+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "b0f05878-0ff3-4649-bdbc-e00ebef5d2d2", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.81, "x": 0.095, "y": 0.82 }, "kind": "list", "text": "As long as you assume that initial excess cash and all interim cash flows are distributed to shareholders (i.e., no cash accumulates in the forecast period), it is appropriate to exclude cash from the WACC calculation.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.479+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "1c0f4b7a-2d65-4c83-a046-08a155abcf0a", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.81, "x": 0.095, "y": 0.32 }, "kind": "list", "text": "WACC is the weighted average of the debt and equity costs of capital (including preferred stock), using market value weights for capital structure components.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.479+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "4682cac1-ce56-495d-a8a3-2c2b4cad5fd7", "parentComponentId": null }, { "bbox": { "h": 0.12, "w": 0.81, "x": 0.095, "y": 0.68 }, "kind": "list", "text": "WACC does not take into account a dynamic capital structure; therefore, a constant capital structure (i.e., subject company or industry average leverage) should generally be assumed. For a firm with a rapidly changing capital structure (i.e., an LBO), it may be appropriate to use a different WACC in each year of the forecast as financial leverage changes.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.479+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "8a73fa12-23d9-418c-829e-f120c49c13bd", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.81, "x": 0.095, "y": 0.63 }, "kind": "list", "text": "In valuing an M&A target, use the WACC of the target company rather than the WACC of the acquiror.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.479+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "8d667ea5-df0b-432b-9ff7-3905fc3da6bc", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.45, "x": 0.095, "y": 0.41 }, "kind": "list", "text": "The weighted average cost of capital is defined as:", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.479+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "b45a58cd-bc28-497d-b011-8d4e7dab6687", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.81, "x": 0.095, "y": 0.24 }, "kind": "paragraph", "text": "Use a firm's after-tax, nominal WACC to discount the after-tax, nominal unlevered Free Cash Flows to the Firm.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.479+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "31424722-fa64-4271-a5c0-0efeeea4c6ba", "parentComponentId": null }, { "bbox": { "h": 0.12, "w": 0.45, "x": 0.44, "y": 0.46 }, "kind": "subtitle", "text": "KE=cost of common equity capital. E/V=ratio of market value of common equity to total firm value. KD=cost of debt capital. D/V=ratio of market value of debt to total firm value. T=corporate marginal tax rate. KP=cost of preferred equity capital. P/V=ratio of market value of preferred equity to total firm value.", "attrs": null, "canon": { "kind": { "name": "Subtitle", "slug": "subtitle", "status": "active", "canonId": "82d821ee-2793-42e7-8f16-c6131385a3ce", "version": 1, "description": "Header-zone supporting text near the title (= ex body.description with bbox)." }, "tool": null, "subkind": null, "framework": null }, "subkind": null, "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.479+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "db46c6dd-1572-4f95-ad8c-c3ba455cceb2", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.42, "x": 0.095, "y": 0.185 }, "kind": "title", "text": "Calculating the Discount Rate", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.479+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "f973fa5d-bdfe-4298-8a5d-4b792c51acaa", "parentComponentId": null } ], "metrics": [], "tools": [], "frameworks": [ { "matchId": "f7a9c4b6-b8b7-49ac-8d11-67b983829b7c", "evidence": "Explicit formula provided for Weighted Average Cost of Capital", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:02.479+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 10, "frameworkName": "wacc-formula" } ], "arcBeats": [ { "to": 10, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 5, "name": "Problem & Complication", "beatId": "626e9de9-7e23-4de5-acf7-93e6d74402f2", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Problem & Complication", "slug": "consultants-gambit-problem-complication", "status": "active", "canonId": "019dd9b8-064a-777f-a374-e9a8c43dedd4", "version": 1, "description": null }, "evidence": "The document then delves into the advantages and disadvantages of DCF and cash flow projections, addressing potential complications.", "position": 1, "isPrimaryArc": true, "parentBeatType": { "name": "Complication", "slug": "complication", "status": "active", "canonId": "019dd9b8-0275-7709-b2d6-4f77c3fc7579", "version": 1, "description": "The point in the narrative where the audience should feel discomfort. Required for argumentative arcs." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 11, "type": "setup", "title": "Includes specific definitions for CAPM variables and guidance on data sources like Bloomberg and BARRA.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "dense", "densityScore": 56, "componentCount": 6, "textChars": 670, "nDataPoints": 6, "notes": "Includes specific definitions for CAPM variables and guidance on data sources like Bloomberg and BARRA.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:01.484+00", "seconds": 3.078, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/11", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-11", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.1, "w": 0.8, "x": 0.09, "y": 0.68 }, "kind": "disclaimer", "text": "If you're evaluating a small to midcap situation (less than $4.144 billion in market capitalization), add a 0.6% to 2.6% premium to the cost of equity.", "attrs": null, "canon": { "kind": { "name": "Disclaimer", "slug": "disclaimer", "status": "active", "canonId": "91173477-d91f-4024-bbaf-d4f93e3f82dc", "version": 1, "description": "Legal/cautionary text that occupies most of the body of its slide." }, "tool": null, "subkind": null, "framework": null }, "subkind": null, "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:01.484+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "3b1742f9-1f7c-4d4d-bfc2-b4a703eed856", "parentComponentId": null }, { "bbox": { "h": 0.1, "w": 0.7, "x": 0.14, "y": 0.35 }, "kind": "framework", "text": "K_E = R_F + β[R_M - R_F] + S", "attrs": null, "canon": { "kind": { "name": "Framework", "slug": "framework", "status": "active", "canonId": "019de52c-fa18-77c6-b10a-ccb8277ac0fa", "version": 1, "description": "Named conceptual framework instance." }, "tool": null, "subkind": { "name": "Framework instance", "slug": "instance", "status": "active", "canonId": "019de52d-05a2-72af-be0b-7edc60708a03", "version": 1, "description": null }, "framework": null }, "subkind": "instance", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:01.484+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "2966e2d3-4391-4881-8efe-d493ddfd60b7", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.8, "x": 0.09, "y": 0.23 }, "kind": "paragraph", "text": "The Capital Asset Pricing Model (\"CAPM\") may be used to estimate a company's cost of equity based on the risk-free rate plus a premium for equity risk.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:01.484+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "fa241b6b-a1e2-4ddc-8047-bf53753b78f9", "parentComponentId": null }, { "bbox": { "h": 0.1, "w": 0.8, "x": 0.09, "y": 0.81 }, "kind": "source-note", "text": "(1) The long-term risk free rate should be estimated by the interpolated 20 year US Treasury rate available on Bloomberg. (2) Source: Ibbotson Associates: Stocks, Bonds, Bills, and Inflation, 2001 Yearbook.", "attrs": null, "canon": { "kind": { "name": "Source note", "slug": "source-note", "status": "active", "canonId": "23484952-494b-4a5e-b1ad-550d0d70e948", "version": 1, "description": "Attribution / source / caveat placed at the slide footer. Numbered footnotes use attrs.numbered." }, "tool": null, "subkind": null, "framework": null }, "subkind": null, "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:01.484+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "416a76b0-e18c-4c25-90f4-f17983235d4e", "parentComponentId": null }, { "bbox": { "h": 0.15, "w": 0.7, "x": 0.14, "y": 0.52 }, "kind": "table", "text": "Risk-Free Rate: 20-year US Treasury; Market Risk Premium: 7.8%; Beta: 5-year historical adjusted", "attrs": null, "canon": { "kind": { "name": "Table", "slug": "table", "status": "active", "canonId": "019de52c-f9c8-7148-8119-eaac9594cd28", "version": 1, "description": "Tabular data layout." }, "tool": null, "subkind": { "name": "Data table", "slug": "data", "status": "active", "canonId": "019de52d-02d5-75b8-8abf-88e92bf63569", "version": 1, "description": null }, "framework": null }, "subkind": "data", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:01.484+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "7c822007-31f6-4eb8-85e9-0e5300cf4d76", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.5, "x": 0.09, "y": 0.18 }, "kind": "title", "text": "Calculating the Cost of Equity Capital", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:01.484+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "e46270a4-a311-4d80-9597-340b9eefce88", "parentComponentId": null } ], "metrics": [], "tools": [], "frameworks": [ { "matchId": "e28bef75-1dfa-41ad-8b61-5f8344098ac6", "evidence": "CAPM formula presentation", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:01.484+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 11, "frameworkName": "capital-allocation-framework" } ], "arcBeats": [ { "to": 24, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 11, "name": "Evidence & Proof", "beatId": "75553425-a586-4b14-bbb5-81d2291f030e", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Evidence & Proof", "slug": "consultants-gambit-evidence-proof", "status": "active", "canonId": "019dd9b8-07b1-7688-8e1e-7637fec3802a", "version": 1, "description": null }, "evidence": "The document provides detailed methodologies for calculating the discount rate, cost of equity capital, and equity beta, serving as evidence and proof for the DCF analysis.", "position": 2, "isPrimaryArc": true, "parentBeatType": { "name": "Evidence", "slug": "evidence", "status": "active", "canonId": "019dd9b8-03f9-772a-b84a-4f07b415b77a", "version": 1, "description": "A dedicated proof beat exists in only ~4 arcs (Gambit, Sequoia, AIDA, Monroes). Other arcs embed evidence inline within development." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [ { "to": 15, "from": 11, "loop": { "name": "40_mece_breakdown", "slug": "40-mece-breakdown", "status": "active", "bestFor": "Problem structuring, ensuring completeness, strategic analysis", "canonId": "019dd956-763c-765e-8b68-6ee3ae1ef184", "version": 1, "bodyDocId": "019df22a-2420-77be-bc41-ded96d08cb21", "structure": "The Whole -> Category A (distinct) -> Category B (distinct) -> Category C (distinct) -> Complete Coverage", "description": "Divide a complex topic into mutually exclusive, collectively exhaustive categories", "familyLabel": null }, "matchId": "9f6852b2-a1a3-435d-bb43-e037fea95334", "evidence": "The document provides a detailed breakdown of the cost of capital into its components.", "position": 0, "objective": "To break down the components of cost of capital", "confidence": 0.7, "extraction": { "at": "2026-07-16 22:04:29.027478+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": "doc-narrative-v1" } } ], "locked": true }, { "page": 12, "type": "setup", "title": "Part of a DCF Primer deck by Bear Stearns.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "dense", "densityScore": 56, "componentCount": 5, "textChars": 1268, "nDataPoints": 2, "notes": "Part of a DCF Primer deck by Bear Stearns.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:04.55+00", "seconds": 6.126, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/12", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-12", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.38, "w": 0.81, "x": 0.095, "y": 0.363 }, "kind": "list", "text": "The long-term rate (i.e., 20 years) most clearly matches the time frame of most investment or acquisition decisions.\nThe long-term rate extends beyond the forecast horizon to account for the terminal value.\nLong-term inflation expectations embodied in the long-term rate are less volatile than the short-term inflation expectations reflected in yields of shorter-term bonds.\nThe long-term rate is subject to fewer random disturbances compared to shorter-term rates.\nAlthough the long-term rate reflects greater price risk than bonds of a shorter duration, long-term treasuries are exposed to relatively low reinvestment risk.\nA potential problem with using the long-term yield, however, is that evidence suggests that long-term Treasury bonds are not risk-free as they have an estimated historical beta of approximately 0.10.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:04.55+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "9a5231ca-2376-46a2-8f6f-1b2bb2b2f738", "parentComponentId": null }, { "bbox": { "h": 0.06, "w": 0.81, "x": 0.095, "y": 0.242 }, "kind": "paragraph", "text": "Under the CAPM framework, the security that is used as a proxy for the risk-free rate should ideally have a beta of zero and a maturity which approximates the forecast horizon for the investment under consideration.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:04.55+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "f932721c-f658-4559-8f91-9622136a8f3b", "parentComponentId": null }, { "bbox": { "h": 0.02, "w": 0.81, "x": 0.095, "y": 0.9 }, "kind": "source-note", "text": "(1) Based on the regression of the monthly returns of the Treasury Bond maturing on August 15, 2021 against those of the S&P 500 from December 29, 1995 through December 29, 2000.", "attrs": { "numbered": true }, "canon": { "kind": { "name": "Source note", "slug": "source-note", "status": "active", "canonId": "23484952-494b-4a5e-b1ad-550d0d70e948", "version": 1, "description": "Attribution / source / caveat placed at the slide footer. Numbered footnotes use attrs.numbered." }, "tool": null, "subkind": null, "framework": null }, "subkind": null, "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:04.55+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "85c4eb97-7b20-4306-bc33-834e8eddb117", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.21, "x": 0.095, "y": 0.185 }, "kind": "title", "text": "The Risk-Free Rate", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:04.55+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "c086b465-07b8-4f18-8431-7e8c5ee6923e", "parentComponentId": null }, { "bbox": { "h": 0.02, "w": 0.31, "x": 0.623, "y": 0.125 }, "kind": "title", "text": "Discounted Cash Flow Methodology", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:04.55+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "cd57f9c3-2b9c-454e-a466-a840a8f59e55", "parentComponentId": null } ], "metrics": [], "tools": [ { "tool": { "name": "Valuation: DCF", "slug": "dcf", "status": "active", "bestFor": null, "canonId": "019df269-2031-7273-9014-0c70beb91e11", "version": 1, "bodyDocId": "019df269-200e-76ea-8883-6ee35d39c836", "description": "You project free cash flows over an explicit forecast period (typically", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "817f8400-d8af-460a-bb00-8d2523f9bebb", "evidence": "Discounted Cash Flow Methodology", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-17 03:30:04.623506+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 12, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null } ], "frameworks": [ { "matchId": "2fc622f4-8076-4f65-ae39-3420db8dde24", "evidence": "Explicitly mentioned in the text as the framework for selecting the risk-free rate proxy.", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:04.55+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 12, "frameworkName": "CAPM" } ], "arcBeats": [ { "to": 24, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 11, "name": "Evidence & Proof", "beatId": "75553425-a586-4b14-bbb5-81d2291f030e", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Evidence & Proof", "slug": "consultants-gambit-evidence-proof", "status": "active", "canonId": "019dd9b8-07b1-7688-8e1e-7637fec3802a", "version": 1, "description": null }, "evidence": "The document provides detailed methodologies for calculating the discount rate, cost of equity capital, and equity beta, serving as evidence and proof for the DCF analysis.", "position": 2, "isPrimaryArc": true, "parentBeatType": { "name": "Evidence", "slug": "evidence", "status": "active", "canonId": "019dd9b8-03f9-772a-b84a-4f07b415b77a", "version": 1, "description": "A dedicated proof beat exists in only ~4 arcs (Gambit, Sequoia, AIDA, Monroes). Other arcs embed evidence inline within development." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [ { "to": 15, "from": 11, "loop": { "name": "40_mece_breakdown", "slug": "40-mece-breakdown", "status": "active", "bestFor": "Problem structuring, ensuring completeness, strategic analysis", "canonId": "019dd956-763c-765e-8b68-6ee3ae1ef184", "version": 1, "bodyDocId": "019df22a-2420-77be-bc41-ded96d08cb21", "structure": "The Whole -> Category A (distinct) -> Category B (distinct) -> Category C (distinct) -> Complete Coverage", "description": "Divide a complex topic into mutually exclusive, collectively exhaustive categories", "familyLabel": null }, "matchId": "9f6852b2-a1a3-435d-bb43-e037fea95334", "evidence": "The document provides a detailed breakdown of the cost of capital into its components.", "position": 0, "objective": "To break down the components of cost of capital", "confidence": 0.7, "extraction": { "at": "2026-07-16 22:04:29.027478+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": "doc-narrative-v1" } } ], "locked": true }, { "page": 13, "type": "setup", "title": "Bear Stearns internal DCF methodology primer.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "overcrowded", "densityScore": 82, "componentCount": 9, "textChars": 1824, "nDataPoints": 0, "notes": "Bear Stearns internal DCF methodology primer.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:06.623+00", "seconds": 7.938, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/13", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-13", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.06, "w": 0.82, "x": 0.09, "y": 0.74 }, "kind": "list", "text": "Use the S&P 500 (the default setting on Bloomberg) as the market proxy in beta calculations for US stocks. The definition of the market for beta calculations should be the same as that used to calculate the market risk premium.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:06.623+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "0a03f4ee-3818-4b17-b981-4ec4e0e2b843", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.82, "x": 0.09, "y": 0.67 }, "kind": "list", "text": "For historical betas, always use the \"adjusted\" beta, which corrects for the convergence of most stocks to 1.00 over time, and, consequently, is a better predictor of future price movements.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:06.623+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "0f109b43-ca85-40b3-96e9-0b1f7c2ec059", "parentComponentId": null }, { "bbox": { "h": 0.08, "w": 0.82, "x": 0.09, "y": 0.51 }, "kind": "list", "text": "For companies that are not public, have short operational histories, restructured operations, or leverage that departs significantly from the industry average, it may be appropriate to use an industry average beta(1) rather than an individual company beta if good comparable companies are available.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:06.623+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "2afccaf1-7606-4cbe-ac40-e68c64f67a25", "parentComponentId": null }, { "bbox": { "h": 0.04, "w": 0.82, "x": 0.09, "y": 0.61 }, "kind": "list", "text": "Additionally, when using DCF for sum-of-the-parts analysis, industry average betas may be appropriate for the separate business units.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:06.623+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "2d73e166-f35b-481c-9a15-ac9008b1990c", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.82, "x": 0.09, "y": 0.82 }, "kind": "list", "text": "BARRA predicted betas can be obtained through the Investment Banking Information Center.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:06.623+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "87b921ab-288c-4d37-9c32-657888577535", "parentComponentId": null }, { "bbox": { "h": 0.12, "w": 0.82, "x": 0.09, "y": 0.38 }, "kind": "list", "text": "For public companies that are being valued using DCF methodology: Starting point is the subject company's observed historical beta and/or predicted beta. As appropriate, the subject company's beta should be cross-checked versus the betas for comparable, publicly traded companies.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:06.623+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "b8980da2-8070-4076-99a5-f5929a16c7be", "parentComponentId": null }, { "bbox": { "h": 0.12, "w": 0.82, "x": 0.09, "y": 0.23 }, "kind": "paragraph", "text": "Beta should be calculated using historical adjusted betas based on a longer time frame (5 years using monthly observations) for more stable, mature companies and a shorter period (2 years using weekly observations) for dynamic, high growth industries or for recently restructured companies. BARRA predicted betas may be used as an alternative to historical betas if this is appropriate under the circumstances.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:06.623+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "adfe858c-5b43-4ba4-b823-ca596c7cafc5", "parentComponentId": null }, { "bbox": { "h": 0.02, "w": 0.82, "x": 0.09, "y": 0.89 }, "kind": "source-note", "text": "(1) The industry average beta can be calculated by taking the market capitalization weighted average unlevered beta for a group of comparable, publicly traded companies.", "attrs": { "numbered": true }, "canon": { "kind": { "name": "Source note", "slug": "source-note", "status": "active", "canonId": "23484952-494b-4a5e-b1ad-550d0d70e948", "version": 1, "description": "Attribution / source / caveat placed at the slide footer. Numbered footnotes use attrs.numbered." }, "tool": null, "subkind": null, "framework": null }, "subkind": null, "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:06.623+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "d87263fd-87d7-44fe-9284-0d8445df2546", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.35, "x": 0.09, "y": 0.17 }, "kind": "title", "text": "Calculating the Equity Beta", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:06.623+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "c62daeb1-9bc8-4ca6-9036-d18d32d670d1", "parentComponentId": null } ], "metrics": [], "tools": [ { "tool": { "name": "2x2 matrix", "slug": "matrix-2x2", "status": "active", "bestFor": null, "canonId": "019dd9e1-50ab-72d1-8afb-3ab0a38e32a8", "version": 1, "bodyDocId": null, "description": "BCG matrix, importance/urgency, any axes-and-quadrants frame.", "familyLabel": null, "categoryName": null, "categorySlug": null }, "agent": null, "layer": "slide", "agents": null, "matchId": "47c16d06-fa45-467c-b3ad-c251759a2d8d", "evidence": "list/bullet: For companies that are not public, have short operational histories, restructured operations, or leverage that departs significantly from the industry average, it may be appropriate to use an industry average beta", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.7, "extraction": { "at": "2026-07-17 03:30:04.70508+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 13, "whyItWorks": null, "antipattern": null, "cardinality": "common", "narrativePurpose": null } ], "frameworks": [], "arcBeats": [ { "to": 24, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 11, "name": "Evidence & Proof", "beatId": "75553425-a586-4b14-bbb5-81d2291f030e", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Evidence & Proof", "slug": "consultants-gambit-evidence-proof", "status": "active", "canonId": "019dd9b8-07b1-7688-8e1e-7637fec3802a", "version": 1, "description": null }, "evidence": "The document provides detailed methodologies for calculating the discount rate, cost of equity capital, and equity beta, serving as evidence and proof for the DCF analysis.", "position": 2, "isPrimaryArc": true, "parentBeatType": { "name": "Evidence", "slug": "evidence", "status": "active", "canonId": "019dd9b8-03f9-772a-b84a-4f07b415b77a", "version": 1, "description": "A dedicated proof beat exists in only ~4 arcs (Gambit, Sequoia, AIDA, Monroes). Other arcs embed evidence inline within development." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [ { "to": 15, "from": 11, "loop": { "name": "40_mece_breakdown", "slug": "40-mece-breakdown", "status": "active", "bestFor": "Problem structuring, ensuring completeness, strategic analysis", "canonId": "019dd956-763c-765e-8b68-6ee3ae1ef184", "version": 1, "bodyDocId": "019df22a-2420-77be-bc41-ded96d08cb21", "structure": "The Whole -> Category A (distinct) -> Category B (distinct) -> Category C (distinct) -> Complete Coverage", "description": "Divide a complex topic into mutually exclusive, collectively exhaustive categories", "familyLabel": null }, "matchId": "9f6852b2-a1a3-435d-bb43-e037fea95334", "evidence": "The document provides a detailed breakdown of the cost of capital into its components.", "position": 0, "objective": "To break down the components of cost of capital", "confidence": 0.7, "extraction": { "at": "2026-07-16 22:04:29.027478+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": "doc-narrative-v1" } } ], "locked": true }, { "page": 14, "type": "setup", "title": "The slide provides a structured overview of technical choices in financial modeling.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "dense", "densityScore": 71, "componentCount": 7, "textChars": 1133, "nDataPoints": 4, "notes": "The slide provides a structured overview of technical choices in financial modeling.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:02.106+00", "seconds": 3.156, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/14", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-14", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.15, "w": 0.81, "x": 0.095, "y": 0.51 }, "kind": "list", "text": "Frequency of Observations: Practical data constraints influence the frequency of observations. Bloomberg, for example, considers a maximum of 244 data points for monthly data and 399 data points for weekly data.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.106+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "5e3880d2-d285-4e75-96f0-115480226b21", "parentComponentId": null }, { "bbox": { "h": 0.1, "w": 0.81, "x": 0.095, "y": 0.325 }, "kind": "list", "text": "Predicted vs. Historical: Predicted betas based on a multi-factor risk model (i.e., BARRA betas) may be used. Alternatively, historical betas may be used to the extent that past performance is an effective predictor of future performance.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.106+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "862aa7d1-fd37-45b0-b110-5ba26ed6d280", "parentComponentId": null }, { "bbox": { "h": 0.2, "w": 0.81, "x": 0.095, "y": 0.66 }, "kind": "list", "text": "Individual Beta vs. Industry Average: For public companies, use observed historical/predicted beta cross-checked against comparables. For non-public or restructured companies, industry average beta is often more appropriate.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.106+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "a201505f-343f-4bb9-9515-6b1d12759134", "parentComponentId": null }, { "bbox": { "h": 0.1, "w": 0.81, "x": 0.095, "y": 0.405 }, "kind": "list", "text": "Historical Time Frame: A longer time frame (5 years) smoothes out irregularities. A shorter period (2 years) may be more appropriate for companies in dynamic, high growth industries or for recently restructured companies.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.106+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "eed94bc5-feee-45b9-9844-d0a4d32c9edc", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.81, "x": 0.095, "y": 0.225 }, "kind": "paragraph", "text": "Although the formula for calculating beta is well-defined,(1) there are several issues to consider in calculating beta.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.106+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "67c09254-07c0-4396-ba9c-50f0ea4c6dd9", "parentComponentId": null }, { "bbox": { "h": 0.02, "w": 0.5, "x": 0.095, "y": 0.9 }, "kind": "source-note", "text": "(1) Beta is equal to the covariance of the security and the market divided by the variance of the market.", "attrs": null, "canon": { "kind": { "name": "Source note", "slug": "source-note", "status": "active", "canonId": "23484952-494b-4a5e-b1ad-550d0d70e948", "version": 1, "description": "Attribution / source / caveat placed at the slide footer. Numbered footnotes use attrs.numbered." }, "tool": null, "subkind": null, "framework": null }, "subkind": null, "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.106+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "0f4ac1d4-ed30-4286-a3fc-547732889839", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.27, "x": 0.095, "y": 0.185 }, "kind": "title", "text": "The Equity Beta", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.106+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "077ee294-ff17-493a-85f4-ee6a670384db", "parentComponentId": null } ], "metrics": [], "tools": [ { "tool": { "name": "List presentation", "slug": "list-presentation", "status": "active", "bestFor": null, "canonId": "019dd9e1-4ef7-777d-ba68-9074c2b3bcf1", "version": 1, "bodyDocId": null, "description": "Bulleted, numbered, or checklist enumerations.", "familyLabel": null, "categoryName": null, "categorySlug": null }, "agent": null, "layer": "slide", "agents": null, "matchId": "c5b79f23-a571-4ec8-995a-a2af70797698", "evidence": "list/bullet: Predicted vs. Historical: Predicted betas based on a multi-factor risk model (i.e., BARRA betas) may be used.", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.8, "extraction": { "at": "2026-07-17 03:30:04.809044+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 14, "whyItWorks": null, "antipattern": null, "cardinality": "common", "narrativePurpose": null } ], "frameworks": [ { "matchId": "842309c5-a0f2-4d77-9933-01b79d93d310", "evidence": "The slide presents a structured methodology for selecting inputs in a financial model.", "framework": null, "confidence": 0.8, "extraction": { "at": "2026-05-02 14:31:02.106+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 14, "frameworkName": "analytical-method" } ], "arcBeats": [ { "to": 24, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 11, "name": "Evidence & Proof", "beatId": "75553425-a586-4b14-bbb5-81d2291f030e", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Evidence & Proof", "slug": "consultants-gambit-evidence-proof", "status": "active", "canonId": "019dd9b8-07b1-7688-8e1e-7637fec3802a", "version": 1, "description": null }, "evidence": "The document provides detailed methodologies for calculating the discount rate, cost of equity capital, and equity beta, serving as evidence and proof for the DCF analysis.", "position": 2, "isPrimaryArc": true, "parentBeatType": { "name": "Evidence", "slug": "evidence", "status": "active", "canonId": "019dd9b8-03f9-772a-b84a-4f07b415b77a", "version": 1, "description": "A dedicated proof beat exists in only ~4 arcs (Gambit, Sequoia, AIDA, Monroes). Other arcs embed evidence inline within development." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [ { "to": 15, "from": 11, "loop": { "name": "40_mece_breakdown", "slug": "40-mece-breakdown", "status": "active", "bestFor": "Problem structuring, ensuring completeness, strategic analysis", "canonId": "019dd956-763c-765e-8b68-6ee3ae1ef184", "version": 1, "bodyDocId": "019df22a-2420-77be-bc41-ded96d08cb21", "structure": "The Whole -> Category A (distinct) -> Category B (distinct) -> Category C (distinct) -> Complete Coverage", "description": "Divide a complex topic into mutually exclusive, collectively exhaustive categories", "familyLabel": null }, "matchId": "9f6852b2-a1a3-435d-bb43-e037fea95334", "evidence": "The document provides a detailed breakdown of the cost of capital into its components.", "position": 0, "objective": "To break down the components of cost of capital", "confidence": 0.7, "extraction": { "at": "2026-07-16 22:04:29.027478+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": "doc-narrative-v1" } } ], "locked": true }, { "page": 15, "type": "setup", "title": "Includes the specific formula for adjusted beta: (Unadjusted beta * 2/3) + (1.00 * 1/3).", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "dense", "densityScore": 71, "componentCount": 8, "textChars": 946, "nDataPoints": 0, "notes": "Includes the specific formula for adjusted beta: (Unadjusted beta * 2/3) + (1.00 * 1/3).", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:02.283+00", "seconds": 3.157, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/15", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-15", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.06, "w": 0.6, "x": 0.32, "y": 0.52 }, "kind": "list", "text": "The most widely used index is the S&P 500, largely because it has been used frequently to calculate market risk premia. The most notable example is Ibbotson Associates' calculation of the market risk premium since 1926.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.283+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "067c4de7-750b-48ae-8563-abbf680d73d7", "parentComponentId": null }, { "bbox": { "h": 0.06, "w": 0.6, "x": 0.32, "y": 0.36 }, "kind": "list", "text": "Most sources adjust the historical beta toward 1.00 since the beta of most stocks converges to 1.00 over time. The adjustment formula is: Adjusted Beta = (Unadjusted beta * 2/3) + (1.00 * 1/3).", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.283+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "76f35e07-26b2-4a2e-88ee-2015064e7335", "parentComponentId": null }, { "bbox": { "h": 0.06, "w": 0.6, "x": 0.32, "y": 0.45 }, "kind": "list", "text": "The return on the market should theoretically reflect a weighted index of all possible investments available to an investor (common stocks, preferred stocks, bonds, commodities, real estate, etc.), both domestically and internationally.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.283+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "da54ac80-aa4e-4c71-9d78-db3c3cbb5ff7", "parentComponentId": null }, { "bbox": { "h": 0.06, "w": 0.6, "x": 0.32, "y": 0.29 }, "kind": "list", "text": "Unadjusted historical betas are calculated according to the strict mathematical definition, but empirically they have not accurately predicted future price movements as they tend to be too high.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.283+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "f42d1a52-dab4-4ef9-95c0-258c46aaa009", "parentComponentId": null }, { "bbox": { "h": 0.02, "w": 0.2, "x": 0.075, "y": 0.29 }, "kind": "paragraph", "text": "Adjusted vs. Unadjusted Betas", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.283+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "19cf7b77-e2d0-4efa-b2d9-690287ac94eb", "parentComponentId": null }, { "bbox": { "h": 0.02, "w": 0.2, "x": 0.075, "y": 0.45 }, "kind": "paragraph", "text": "Proxy for the Market", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.283+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "ecf64872-1c52-4597-b055-5f0a8cb50322", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.35, "x": 0.095, "y": 0.175 }, "kind": "title", "text": "The Equity Beta (cont.)", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.283+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "8dfeeccd-8f04-424b-aaef-fdafd1ff7ae7", "parentComponentId": null }, { "bbox": { "h": 0.02, "w": 0.3, "x": 0.623, "y": 0.125 }, "kind": "title", "text": "Discounted Cash Flow Methodology", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Subtitle", "slug": "subtitle", "status": "active", "canonId": "019de52c-fb09-739d-900c-815b0d9ac526", "version": 1, "description": null }, "framework": null }, "subkind": "subtitle", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.283+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "94a752f1-29d2-48d0-b73c-1e3ad8e7d825", "parentComponentId": null } ], "metrics": [], "tools": [ { "tool": { "name": "Audience Definition", "slug": "audience-definition", "status": "active", "bestFor": null, "canonId": "019dd956-7f2a-775d-aeee-ff099bcb7756", "version": 1, "bodyDocId": null, "description": "Six key questions: Who are they? What do they know? What do they believe? What do they care about? What do they fear? What decisions can they make?", "familyLabel": null, "categoryName": "Block", "categorySlug": "block" }, "agent": "Storyteller", "layer": "slide", "agents": [ "Storyteller" ], "matchId": "14e32bb0-43cc-4aa9-a2e4-d3ef0250337b", "evidence": "Proxy for the Market", "pageRefs": null, "priority": "Core", "whenToUse": null, "confidence": 0.6, "extraction": { "at": "2026-07-17 03:30:04.920407+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 15, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null } ], "frameworks": [], "arcBeats": [ { "to": 24, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 11, "name": "Evidence & Proof", "beatId": "75553425-a586-4b14-bbb5-81d2291f030e", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Evidence & Proof", "slug": "consultants-gambit-evidence-proof", "status": "active", "canonId": "019dd9b8-07b1-7688-8e1e-7637fec3802a", "version": 1, "description": null }, "evidence": "The document provides detailed methodologies for calculating the discount rate, cost of equity capital, and equity beta, serving as evidence and proof for the DCF analysis.", "position": 2, "isPrimaryArc": true, "parentBeatType": { "name": "Evidence", "slug": "evidence", "status": "active", "canonId": "019dd9b8-03f9-772a-b84a-4f07b415b77a", "version": 1, "description": "A dedicated proof beat exists in only ~4 arcs (Gambit, Sequoia, AIDA, Monroes). Other arcs embed evidence inline within development." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [ { "to": 15, "from": 11, "loop": { "name": "40_mece_breakdown", "slug": "40-mece-breakdown", "status": "active", "bestFor": "Problem structuring, ensuring completeness, strategic analysis", "canonId": "019dd956-763c-765e-8b68-6ee3ae1ef184", "version": 1, "bodyDocId": "019df22a-2420-77be-bc41-ded96d08cb21", "structure": "The Whole -> Category A (distinct) -> Category B (distinct) -> Category C (distinct) -> Complete Coverage", "description": "Divide a complex topic into mutually exclusive, collectively exhaustive categories", "familyLabel": null }, "matchId": "9f6852b2-a1a3-435d-bb43-e037fea95334", "evidence": "The document provides a detailed breakdown of the cost of capital into its components.", "position": 0, "objective": "To break down the components of cost of capital", "confidence": 0.7, "extraction": { "at": "2026-07-16 22:04:29.027478+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": "doc-narrative-v1" } } ], "locked": true }, { "page": 16, "type": "setup", "title": "The slide details the differences in historical vs. predicted beta, time frames, observation frequency, adjustment status, and market proxies across various fin", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "dense", "densityScore": 58, "componentCount": 6, "textChars": 1164, "nDataPoints": 0, "notes": "The slide details the differences in historical vs. predicted beta, time frames, observation frequency, adjustment status, and market proxies across various financial data providers.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:07.33+00", "seconds": 8.112, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/16", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-16", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.04, "w": 0.85, "x": 0.095, "y": 0.72 }, "kind": "paragraph", "text": "In addition to the sources listed above, Bloomberg and IDD may be used to calculate historical betas adjusted for stock splits, dividends and convergence toward 1.00.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.33+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "7e82cf51-f3de-4fe1-8b97-6597bbbebc3b", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.85, "x": 0.095, "y": 0.225 }, "kind": "paragraph", "text": "Most sources publish 5-year historical adjusted betas which are calculated using monthly observations. The exception is BARRA, which publishes monthly predictions of beta based on an analysis of industry and firm-specific risk factors.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.33+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "f7b81ae8-b113-43db-80d1-54ea22648b05", "parentComponentId": null }, { "bbox": { "h": 0.1, "w": 0.85, "x": 0.095, "y": 0.8 }, "kind": "source-note", "text": "(1) BARRA uses the current characteristics of a firm and a risk model that is based on monthly data from January 1973 onward to calculate its betas. (2) Morgan Stanley Capital International version; applies to companies in multiple countries. (3) Financial Times version; applies to companies in multiple countries. (4) Applies only to companies listed on UK stock exchanges. (5) Based on similar methodology to US betas, except risk model is based on monthly data from January 1988 onward. (6) Based on similar methodology to US betas, except risk model is based on monthly data from December 1987 onward. (7) BARRA calculates both global and local predicted betas in its global equity models.", "attrs": null, "canon": { "kind": { "name": "Source note", "slug": "source-note", "status": "active", "canonId": "23484952-494b-4a5e-b1ad-550d0d70e948", "version": 1, "description": "Attribution / source / caveat placed at the slide footer. Numbered footnotes use attrs.numbered." }, "tool": null, "subkind": null, "framework": null }, "subkind": null, "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.33+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "5495d49b-1160-4e02-8ea9-1cc92bc20230", "parentComponentId": null }, { "bbox": { "h": 0.15, "w": 0.85, "x": 0.095, "y": 0.32 }, "kind": "table", "text": "US Equity Betas table", "attrs": null, "canon": { "kind": { "name": "Table", "slug": "table", "status": "active", "canonId": "019de52c-f9c8-7148-8119-eaac9594cd28", "version": 1, "description": "Tabular data layout." }, "tool": null, "subkind": { "name": "Data table", "slug": "data", "status": "active", "canonId": "019de52d-02d5-75b8-8abf-88e92bf63569", "version": 1, "description": null }, "framework": null }, "subkind": "data", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.33+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "050effb6-292d-4c17-b3a7-3eb4f0c6cb40", "parentComponentId": null }, { "bbox": { "h": 0.15, "w": 0.85, "x": 0.095, "y": 0.52 }, "kind": "table", "text": "Global Equity Betas table", "attrs": null, "canon": { "kind": { "name": "Table", "slug": "table", "status": "active", "canonId": "019de52c-f9c8-7148-8119-eaac9594cd28", "version": 1, "description": "Tabular data layout." }, "tool": null, "subkind": { "name": "Data table", "slug": "data", "status": "active", "canonId": "019de52d-02d5-75b8-8abf-88e92bf63569", "version": 1, "description": null }, "framework": null }, "subkind": "data", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.33+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "0c09a3a0-5ece-44ec-ad6b-c26e51bc82c4", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.35, "x": 0.095, "y": 0.18 }, "kind": "title", "text": "The Equity Beta (cont.)", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.33+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "87db1ecc-84a3-4685-889a-be077a9b6fb6", "parentComponentId": null } ], "metrics": [], "tools": [ { "tool": { "name": "Table data", "slug": "table-data", "status": "active", "bestFor": null, "canonId": "019dd9e1-4fab-7168-a82f-b847350a006d", "version": 1, "bodyDocId": null, "description": "Tabular layouts of structured data.", "familyLabel": null, "categoryName": null, "categorySlug": null }, "agent": null, "layer": "slide", "agents": null, "matchId": "61179e2d-9849-4997-adbe-eb520eff9067", "evidence": "table/data: Global Equity Betas table", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-17 03:30:05.086572+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 16, "whyItWorks": null, "antipattern": null, "cardinality": "common", "narrativePurpose": null } ], "frameworks": [], "arcBeats": [ { "to": 24, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 11, "name": "Evidence & Proof", "beatId": "75553425-a586-4b14-bbb5-81d2291f030e", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Evidence & Proof", "slug": "consultants-gambit-evidence-proof", "status": "active", "canonId": "019dd9b8-07b1-7688-8e1e-7637fec3802a", "version": 1, "description": null }, "evidence": "The document provides detailed methodologies for calculating the discount rate, cost of equity capital, and equity beta, serving as evidence and proof for the DCF analysis.", "position": 2, "isPrimaryArc": true, "parentBeatType": { "name": "Evidence", "slug": "evidence", "status": "active", "canonId": "019dd9b8-03f9-772a-b84a-4f07b415b77a", "version": 1, "description": "A dedicated proof beat exists in only ~4 arcs (Gambit, Sequoia, AIDA, Monroes). Other arcs embed evidence inline within development." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 17, "type": "setup", "title": "Bear Stearns DCF Primer slide detailing the Hamada equation application.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "dense", "densityScore": 73, "componentCount": 8, "textChars": 1074, "nDataPoints": 0, "notes": "Bear Stearns DCF Primer slide detailing the Hamada equation application.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:02.644+00", "seconds": 3.418, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/17", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-17", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.06, "w": 0.82, "x": 0.09, "y": 0.52 }, "kind": "list", "text": "If the subject company's beta is being used, it can be unlevered and relevered with an industry average capital structure if its current capital structure departs significantly from the industry average.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.644+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "2b200ccc-d093-48e6-bf46-7a9455ec1120", "parentComponentId": null }, { "bbox": { "h": 0.06, "w": 0.82, "x": 0.09, "y": 0.6 }, "kind": "list", "text": "The capital structure assumption used to relever the subject company's beta should be the same as that used to determine the subject company's WACC.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.644+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "42e1ea55-d0bc-4b1a-a29e-4477896983c5", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.45, "x": 0.09, "y": 0.33 }, "kind": "list", "text": "The formula for levering an unlevered beta is as follows:", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.644+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "588a5084-b640-4d6d-83b9-84b1b378bcf0", "parentComponentId": null }, { "bbox": { "h": 0.06, "w": 0.82, "x": 0.09, "y": 0.24 }, "kind": "paragraph", "text": "The impact of a unique capital structure on a company's beta may be neutralized by unlevering its beta and relevering to the industry average or current capital structure.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.644+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "40f60679-d254-4429-9e1f-3afd36d6f749", "parentComponentId": null }, { "bbox": { "h": 0.08, "w": 0.25, "x": 0.17, "y": 0.38 }, "kind": "paragraph", "text": "βL = βU * [1 + D/E * (1 - T)]\nβU = βL / [1 + D/E * (1 - T)]", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.644+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "dab3af12-d2b6-420c-9c9f-7086d7f0ca6d", "parentComponentId": null }, { "bbox": { "h": 0.04, "w": 0.82, "x": 0.09, "y": 0.88 }, "kind": "source-note", "text": "(1) Include the value of preferred stock and minority interest in the value of debt for purposes of unlevering/relevering beta, but do not tax-effect. (2) Market value of equity should include all in-the-money net options and all other in-the-money common stock equivalents.", "attrs": { "numbered": true }, "canon": { "kind": { "name": "Source note", "slug": "source-note", "status": "active", "canonId": "23484952-494b-4a5e-b1ad-550d0d70e948", "version": 1, "description": "Attribution / source / caveat placed at the slide footer. Numbered footnotes use attrs.numbered." }, "tool": null, "subkind": null, "framework": null }, "subkind": null, "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.644+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "e5bda0bf-477a-499d-b192-fa520eecae13", "parentComponentId": null }, { "bbox": { "h": 0.08, "w": 0.35, "x": 0.45, "y": 0.38 }, "kind": "table", "text": "βL = levered beta. βU = unlevered beta. D = market value of debt. E = market value of equity. T = marginal corporate tax rate.", "attrs": null, "canon": { "kind": { "name": "Table", "slug": "table", "status": "active", "canonId": "019de52c-f9c8-7148-8119-eaac9594cd28", "version": 1, "description": "Tabular data layout." }, "tool": null, "subkind": { "name": "Data table", "slug": "data", "status": "active", "canonId": "019de52d-02d5-75b8-8abf-88e92bf63569", "version": 1, "description": null }, "framework": null }, "subkind": "data", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.644+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "ed9b0218-eee7-4d02-858e-e9bd67dcfef0", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.45, "x": 0.09, "y": 0.18 }, "kind": "title", "text": "Levering and Unlevering Equity Betas", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.644+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "894bfe1f-2b36-46d4-8fb1-3e7980c253ca", "parentComponentId": null } ], "metrics": [], "tools": [ { "tool": { "name": "Waterfall chart", "slug": "waterfall-chart", "status": "active", "bestFor": null, "canonId": "e2799da3-725f-44a9-a093-570f1f388e64", "version": 1, "bodyDocId": null, "description": null, "familyLabel": null, "categoryName": null, "categorySlug": null }, "agent": null, "layer": "slide", "agents": null, "matchId": "f7dcf404-ee05-4619-857c-f5cf74aa1d4d", "evidence": "βL = levered beta. βU = unlevered beta. D = market value of debt. E = market value of equity. T = marginal corporate tax rate.", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.7, "extraction": { "at": "2026-07-17 03:30:05.18268+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 17, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null } ], "frameworks": [ { "matchId": "20518cf1-8280-436f-9e81-c67b3063c9bc", "evidence": "The formulas provided for levering and unlevering beta are standard representations of the Hamada equation.", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:02.644+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 17, "frameworkName": "Hamada Equation" } ], "arcBeats": [ { "to": 24, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 11, "name": "Evidence & Proof", "beatId": "75553425-a586-4b14-bbb5-81d2291f030e", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Evidence & Proof", "slug": "consultants-gambit-evidence-proof", "status": "active", "canonId": "019dd9b8-07b1-7688-8e1e-7637fec3802a", "version": 1, "description": null }, "evidence": "The document provides detailed methodologies for calculating the discount rate, cost of equity capital, and equity beta, serving as evidence and proof for the DCF analysis.", "position": 2, "isPrimaryArc": true, "parentBeatType": { "name": "Evidence", "slug": "evidence", "status": "active", "canonId": "019dd9b8-03f9-772a-b84a-4f07b415b77a", "version": 1, "description": "A dedicated proof beat exists in only ~4 arcs (Gambit, Sequoia, AIDA, Monroes). Other arcs embed evidence inline within development." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 18, "type": "setup", "title": "Part of a DCF Primer deck from Bear Stearns.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "balanced", "densityScore": 41, "componentCount": 5, "textChars": 647, "nDataPoints": 0, "notes": "Part of a DCF Primer deck from Bear Stearns.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:01.926+00", "seconds": 2.492, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/18", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-18", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.04, "w": 0.81, "x": 0.095, "y": 0.363 }, "kind": "list", "text": "The market risk premium is calculated by taking an average of data points over many years in order to incorporate a large sample of events and mitigate measurement error.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:01.926+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "320b9d51-72c8-43b3-aeb8-52cc2bb39605", "parentComponentId": null }, { "bbox": { "h": 0.04, "w": 0.81, "x": 0.095, "y": 0.443 }, "kind": "list", "text": "The market risk premium should be based on the same proxy for the market that is used to calculate the equity beta and on a Treasury security with the same duration as that used to calculate the risk-free rate.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:01.926+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "994e2910-1cec-4644-a304-317e19b7655a", "parentComponentId": null }, { "bbox": { "h": 0.055, "w": 0.81, "x": 0.095, "y": 0.243 }, "kind": "paragraph", "text": "The market risk premium is an estimate of the excess returns an investor can expect to receive as compensation for bearing equity risk (i.e., investing in the market portfolio rather than a risk-free instrument).", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:01.926+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "f9ba73a4-41a4-4285-bd5b-caf4fff6b11f", "parentComponentId": null }, { "bbox": { "h": 0.025, "w": 0.388, "x": 0.095, "y": 0.18 }, "kind": "title", "text": "The Market Risk Premium", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:01.926+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "27235198-4efd-4865-801d-e86ec12d9b96", "parentComponentId": null }, { "bbox": { "h": 0.018, "w": 0.282, "x": 0.623, "y": 0.125 }, "kind": "title", "text": "Discounted Cash Flow Methodology", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Subtitle", "slug": "subtitle", "status": "active", "canonId": "019de52c-fb09-739d-900c-815b0d9ac526", "version": 1, "description": null }, "framework": null }, "subkind": "subtitle", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:01.926+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "3ca851f3-a8cb-4fc1-9165-4b0bbfbaab1e", "parentComponentId": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 24, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 11, "name": "Evidence & Proof", "beatId": "75553425-a586-4b14-bbb5-81d2291f030e", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Evidence & Proof", "slug": "consultants-gambit-evidence-proof", "status": "active", "canonId": "019dd9b8-07b1-7688-8e1e-7637fec3802a", "version": 1, "description": null }, "evidence": "The document provides detailed methodologies for calculating the discount rate, cost of equity capital, and equity beta, serving as evidence and proof for the DCF analysis.", "position": 2, "isPrimaryArc": true, "parentBeatType": { "name": "Evidence", "slug": "evidence", "status": "active", "canonId": "019dd9b8-03f9-772a-b84a-4f07b415b77a", "version": 1, "description": "A dedicated proof beat exists in only ~4 arcs (Gambit, Sequoia, AIDA, Monroes). Other arcs embed evidence inline within development." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 19, "type": "setup", "title": "Part of a series on Discounted Cash Flow Methodology.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "dense", "densityScore": 73, "componentCount": 8, "textChars": 1167, "nDataPoints": 0, "notes": "Part of a series on Discounted Cash Flow Methodology.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:02.568+00", "seconds": 3.129, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/19", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-19", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.03, "w": 0.77, "x": 0.12, "y": 0.595 }, "kind": "list", "text": "Events influencing the market during the 1920s, 1930s, and 1940s are unlikely to repeat themselves.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.568+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "2645d8d2-21cf-4c1e-9a87-9672276e9b07", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.8, "x": 0.095, "y": 0.53 }, "kind": "list", "text": "The counterargument is that a shorter, more recent time frame is more relevant to circumstances today and is, therefore, a better predictor of the future.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.568+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "2bd18530-69ef-455c-8cb9-587584126fd9", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.8, "x": 0.095, "y": 0.33 }, "kind": "list", "text": "Ibbotson Associates calculates risk premiums over several time periods, the longest of which is from 1926 to date.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.568+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "4341d6b8-5e8f-4aee-8fb9-7e9165551926", "parentComponentId": null }, { "bbox": { "h": 0.06, "w": 0.77, "x": 0.12, "y": 0.395 }, "kind": "list", "text": "A long horizon is frequently used because a shorter period potentially underestimates the amount of change that can occur over a long future period and includes a smaller sample of unusual events.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.568+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "75132f85-6f7b-4053-b329-30e58ddf1335", "parentComponentId": null }, { "bbox": { "h": 0.08, "w": 0.77, "x": 0.12, "y": 0.635 }, "kind": "list", "text": "In recent years, information used to evaluate equity is better, investors are more sophisticated, and the market is more efficient and more carefully regulated. Investors should therefore require a smaller premium for investing in equities today than they did in the earlier part of the century.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.568+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "f03c4774-2ce5-4020-898e-79e50294e86d", "parentComponentId": null }, { "bbox": { "h": 0.06, "w": 0.77, "x": 0.12, "y": 0.455 }, "kind": "list", "text": "The time frame from 1926 to the present includes periods of high and low returns, volatile and steady markets, war and peace, inflation and deflation, and prosperity and depression.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.568+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "f8433a6b-c1dd-4198-885d-0cf2bfc8caf6", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.8, "x": 0.095, "y": 0.245 }, "kind": "paragraph", "text": "The appropriate time frame over which to calculate the market risk premium is a matter of debate.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.568+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "8bff9a05-b81f-4e08-b85a-e95d74b4dd2b", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.45, "x": 0.095, "y": 0.175 }, "kind": "title", "text": "The Market Risk Premium (cont.)", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.568+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "6e7c1a1f-da6a-4a2e-9eeb-5e4b2ec8cadd", "parentComponentId": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 24, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 11, "name": "Evidence & Proof", "beatId": "75553425-a586-4b14-bbb5-81d2291f030e", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Evidence & Proof", "slug": "consultants-gambit-evidence-proof", "status": "active", "canonId": "019dd9b8-07b1-7688-8e1e-7637fec3802a", "version": 1, "description": null }, "evidence": "The document provides detailed methodologies for calculating the discount rate, cost of equity capital, and equity beta, serving as evidence and proof for the DCF analysis.", "position": 2, "isPrimaryArc": true, "parentBeatType": { "name": "Evidence", "slug": "evidence", "status": "active", "canonId": "019dd9b8-03f9-772a-b84a-4f07b415b77a", "version": 1, "description": "A dedicated proof beat exists in only ~4 arcs (Gambit, Sequoia, AIDA, Monroes). Other arcs embed evidence inline within development." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 20, "type": "setup", "title": "The slide discusses the controversy between arithmetic and geometric means in financial modeling, specifically within the context of DCF analysis.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "balanced", "densityScore": 25, "componentCount": 4, "textChars": 383, "nDataPoints": 0, "notes": "The slide discusses the controversy between arithmetic and geometric means in financial modeling, specifically within the context of DCF analysis.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:02.283+00", "seconds": 2.831, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/20", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-20", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.12, "w": 0.8, "x": 0.09, "y": 0.77 }, "kind": "disclaimer", "text": "(1) To illustrate, suppose a stock today is priced at $10... (2) Consider a stock priced at $25... (3) For example, assume an investor expects a stock over the next three years...", "attrs": null, "canon": { "kind": { "name": "Disclaimer", "slug": "disclaimer", "status": "active", "canonId": "91173477-d91f-4024-bbaf-d4f93e3f82dc", "version": 1, "description": "Legal/cautionary text that occupies most of the body of its slide." }, "tool": null, "subkind": null, "framework": null }, "subkind": null, "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.283+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "ed7ba891-dcac-471a-9ced-fd236eebeb40", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.8, "x": 0.09, "y": 0.24 }, "kind": "paragraph", "text": "Another controversial matter is whether the market risk premium should be calculated using an arithmetic or geometric mean.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.283+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "93815b32-2ff8-4e6a-9baa-bc9925c0eea9", "parentComponentId": null }, { "bbox": { "h": 0.35, "w": 0.8, "x": 0.09, "y": 0.35 }, "kind": "table", "text": "Arithmetic Mean vs Geometric Mean comparison table", "attrs": null, "canon": { "kind": { "name": "Table", "slug": "table", "status": "active", "canonId": "019de52c-f9c8-7148-8119-eaac9594cd28", "version": 1, "description": "Tabular data layout." }, "tool": null, "subkind": null, "framework": null }, "subkind": "comparison", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.283+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "09131b77-af14-48be-b4ef-0822d1596095", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.4, "x": 0.09, "y": 0.18 }, "kind": "title", "text": "The Market Risk Premium (cont.)", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.283+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "5f785790-a59d-42f0-8fc6-8f1490b86d7b", "parentComponentId": null } ], "metrics": [], "tools": [], "frameworks": [ { "matchId": "dca7dac8-ea97-48ee-82ee-b1978a6bb75d", "evidence": "Side-by-side comparison of arithmetic and geometric mean methodologies.", "framework": null, "confidence": 0.9, "extraction": { "at": "2026-05-02 14:31:02.283+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 20, "frameworkName": "comparison-frame" } ], "arcBeats": [ { "to": 24, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 11, "name": "Evidence & Proof", "beatId": "75553425-a586-4b14-bbb5-81d2291f030e", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Evidence & Proof", "slug": "consultants-gambit-evidence-proof", "status": "active", "canonId": "019dd9b8-07b1-7688-8e1e-7637fec3802a", "version": 1, "description": null }, "evidence": "The document provides detailed methodologies for calculating the discount rate, cost of equity capital, and equity beta, serving as evidence and proof for the DCF analysis.", "position": 2, "isPrimaryArc": true, "parentBeatType": { "name": "Evidence", "slug": "evidence", "status": "active", "canonId": "019dd9b8-03f9-772a-b84a-4f07b415b77a", "version": 1, "description": "A dedicated proof beat exists in only ~4 arcs (Gambit, Sequoia, AIDA, Monroes). Other arcs embed evidence inline within development." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 21, "type": "analysis", "title": "Data source: Ibbotson Associates: Stocks, Bonds, Bills, and Inflation, 2001 Yearbook.", "function": "analyze_data", "rawType": "appendix_data", "block": null, "metadata": { "slideType": "appendix_data", "slideTypeCanon": { "name": "Appendix data", "slug": "appendix_data", "status": "active", "canonId": "019de52d-078a-745b-9ee4-c15f2f539acd", "version": 1, "description": null }, "function": "analyze_data", "functionCanon": { "name": "Analyze data", "slug": "analyze_data", "status": "active", "canonId": "019de52d-1590-7413-8c82-cc218cff40b4", "version": 1, "description": null }, "density": "balanced", "densityScore": 45, "componentCount": 4, "textChars": 688, "nDataPoints": 60, "notes": "Data source: Ibbotson Associates: Stocks, Bonds, Bills, and Inflation, 2001 Yearbook.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:02.2+00", "seconds": 2.664, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/21", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-21", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.06, "w": 0.8, "x": 0.095, "y": 0.24 }, "kind": "paragraph", "text": "Ibbotson Associates provides data that allow the following equity risk premia to be calculated over several time periods, using different Treasury rates and under different mean assumptions.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.2+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "53633b87-b9e5-4d66-828b-a6b4fcb3a392", "parentComponentId": null }, { "bbox": { "h": 0.06, "w": 0.8, "x": 0.095, "y": 0.865 }, "kind": "source-note", "text": "(1) Source: Ibbotson Associates: Stocks, Bonds, Bills, and Inflation, 2001 Yearbook. Stock market returns are those of the S&P 500. Returns on the risk-free asset are based on the income returns of the 20-year Treasury bond and 5-year Treasury bond for long-term and intermediate-term premia, respectively. For short-term premia, the return is based on the yield of the 30-day Treasury bill.", "attrs": null, "canon": { "kind": { "name": "Source note", "slug": "source-note", "status": "active", "canonId": "23484952-494b-4a5e-b1ad-550d0d70e948", "version": 1, "description": "Attribution / source / caveat placed at the slide footer. Numbered footnotes use attrs.numbered." }, "tool": null, "subkind": null, "framework": null }, "subkind": null, "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.2+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "a1b6005f-c2b3-49f4-907b-2b2e7c261835", "parentComponentId": null }, { "bbox": { "h": 0.45, "w": 0.75, "x": 0.125, "y": 0.36 }, "kind": "table", "text": "Table of US equity risk premia by time period, Treasury rate, and mean type.", "attrs": null, "canon": { "kind": { "name": "Table", "slug": "table", "status": "active", "canonId": "019de52c-f9c8-7148-8119-eaac9594cd28", "version": 1, "description": "Tabular data layout." }, "tool": null, "subkind": { "name": "Data table", "slug": "data", "status": "active", "canonId": "019de52d-02d5-75b8-8abf-88e92bf63569", "version": 1, "description": null }, "framework": null }, "subkind": "data", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.2+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "d87a8e94-4e4c-4c03-bf31-d1a882b4525a", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.4, "x": 0.095, "y": 0.185 }, "kind": "title", "text": "The Market Risk Premium (cont.)", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:02.2+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "e7204d79-c638-43ea-b5dc-a37e7d5f902f", "parentComponentId": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 24, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 11, "name": "Evidence & Proof", "beatId": "75553425-a586-4b14-bbb5-81d2291f030e", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Evidence & Proof", "slug": "consultants-gambit-evidence-proof", "status": "active", "canonId": "019dd9b8-07b1-7688-8e1e-7637fec3802a", "version": 1, "description": null }, "evidence": "The document provides detailed methodologies for calculating the discount rate, cost of equity capital, and equity beta, serving as evidence and proof for the DCF analysis.", "position": 2, "isPrimaryArc": true, "parentBeatType": { "name": "Evidence", "slug": "evidence", "status": "active", "canonId": "019dd9b8-03f9-772a-b84a-4f07b415b77a", "version": 1, "description": "A dedicated proof beat exists in only ~4 arcs (Gambit, Sequoia, AIDA, Monroes). Other arcs embed evidence inline within development." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 22, "type": "analysis", "title": "Data sourced from Ibbotson Associates; includes a summary recommendation for risk premium values.", "function": "analyze_data", "rawType": "appendix_data", "block": null, "metadata": { "slideType": "appendix_data", "slideTypeCanon": { "name": "Appendix data", "slug": "appendix_data", "status": "active", "canonId": "019de52d-078a-745b-9ee4-c15f2f539acd", "version": 1, "description": null }, "function": "analyze_data", "functionCanon": { "name": "Analyze data", "slug": "analyze_data", "status": "active", "canonId": "019de52d-1590-7413-8c82-cc218cff40b4", "version": 1, "description": null }, "density": "dense", "densityScore": 51, "componentCount": 5, "textChars": 698, "nDataPoints": 30, "notes": "Data sourced from Ibbotson Associates; includes a summary recommendation for risk premium values.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:03.164+00", "seconds": 3.442, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/22", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-22", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.06, "w": 0.8, "x": 0.095, "y": 0.73 }, "kind": "paragraph", "text": "In summary, it is appropriate to use a market risk premium of 7.8% and small-cap premia of 0.6% for mid-cap stocks, 1.1% for low-cap stocks, and 2.6% for micro-cap stocks.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.164+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "238b6071-695f-402e-a9d4-59866ca034af", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.8, "x": 0.095, "y": 0.225 }, "kind": "paragraph", "text": "Ibbotson Associates also provides data that allow the following small-cap stock premia to be calculated.(1)", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.164+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "41c0e0b4-a236-478d-82e8-bc8c2e071d1c", "parentComponentId": null }, { "bbox": { "h": 0.04, "w": 0.8, "x": 0.095, "y": 0.88 }, "kind": "source-note", "text": "(1) Source: Ibbotson Associates: Stocks, Bonds, Bills, and Inflation, 2001 Yearbook. Small stock risk premia are calculated by comparing the actual equity risk premia of the S&P 500 to the expected equity risk premia for each group of small-cap stocks.", "attrs": null, "canon": { "kind": { "name": "Source note", "slug": "source-note", "status": "active", "canonId": "23484952-494b-4a5e-b1ad-550d0d70e948", "version": 1, "description": "Attribution / source / caveat placed at the slide footer. Numbered footnotes use attrs.numbered." }, "tool": null, "subkind": null, "framework": null }, "subkind": null, "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.164+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "313a4cec-cdb4-4446-8275-fe815fa02b96", "parentComponentId": null }, { "bbox": { "h": 0.42, "w": 0.58, "x": 0.21, "y": 0.31 }, "kind": "table", "text": "United States: Arithmetic Mean Returns table showing time periods 1926-2000 through 1996-2000 for Mid-Cap, Low-Cap, and Micro-Cap premia.", "attrs": null, "canon": { "kind": { "name": "Table", "slug": "table", "status": "active", "canonId": "019de52c-f9c8-7148-8119-eaac9594cd28", "version": 1, "description": "Tabular data layout." }, "tool": null, "subkind": { "name": "Data table", "slug": "data", "status": "active", "canonId": "019de52d-02d5-75b8-8abf-88e92bf63569", "version": 1, "description": null }, "framework": null }, "subkind": "data", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.164+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "97ebb506-aba8-4bd6-9b65-5fabc26ae758", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.4, "x": 0.095, "y": 0.18 }, "kind": "title", "text": "The Market Risk Premium (cont.)", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.164+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "dd55b9c8-c595-4d87-bcbd-ed7b2e12bdc5", "parentComponentId": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 24, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 11, "name": "Evidence & Proof", "beatId": "75553425-a586-4b14-bbb5-81d2291f030e", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Evidence & Proof", "slug": "consultants-gambit-evidence-proof", "status": "active", "canonId": "019dd9b8-07b1-7688-8e1e-7637fec3802a", "version": 1, "description": null }, "evidence": "The document provides detailed methodologies for calculating the discount rate, cost of equity capital, and equity beta, serving as evidence and proof for the DCF analysis.", "position": 2, "isPrimaryArc": true, "parentBeatType": { "name": "Evidence", "slug": "evidence", "status": "active", "canonId": "019dd9b8-03f9-772a-b84a-4f07b415b77a", "version": 1, "description": "A dedicated proof beat exists in only ~4 arcs (Gambit, Sequoia, AIDA, Monroes). Other arcs embed evidence inline within development." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 23, "type": "analysis", "title": "The slide provides context on data limitations for non-US economies and mentions industry practices regarding market risk premium ranges.", "function": "analyze_data", "rawType": "appendix_data", "block": null, "metadata": { "slideType": "appendix_data", "slideTypeCanon": { "name": "Appendix data", "slug": "appendix_data", "status": "active", "canonId": "019de52d-078a-745b-9ee4-c15f2f539acd", "version": 1, "description": null }, "function": "analyze_data", "functionCanon": { "name": "Analyze data", "slug": "analyze_data", "status": "active", "canonId": "019de52d-1590-7413-8c82-cc218cff40b4", "version": 1, "description": null }, "density": "dense", "densityScore": 55, "componentCount": 5, "textChars": 830, "nDataPoints": 70, "notes": "The slide provides context on data limitations for non-US economies and mentions industry practices regarding market risk premium ranges.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:03.698+00", "seconds": 3.461, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/23", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-23", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.15, "w": 0.8, "x": 0.09, "y": 0.7 }, "kind": "list", "text": "Data is available for fewer years for non-US economies, which leads to higher standard errors and less reliable results. Bear Stearns' London office has indicated its belief that many European investment banking firms tend to use a market risk premium of 4.5%–6.0%.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.698+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "317f96ff-ca70-421e-952f-af6735d048f5", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.8, "x": 0.09, "y": 0.24 }, "kind": "paragraph", "text": "Ibbotson Associates also provides data that allow long-term risk premia to be calculated for the following countries.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.698+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "3c493446-7e0e-44e9-ae2f-6bf6f0c9edff", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.8, "x": 0.09, "y": 0.88 }, "kind": "source-note", "text": "(1) Source: Ibbotson Associates: International Equity Risk Premia Report, 2000 Edition. Stock market returns are those given by Morgan Stanley Capital International (MSCI) indices for all countries except the United States, which is based on the returns of the S&P 500.", "attrs": null, "canon": { "kind": { "name": "Source note", "slug": "source-note", "status": "active", "canonId": "23484952-494b-4a5e-b1ad-550d0d70e948", "version": 1, "description": "Attribution / source / caveat placed at the slide footer. Numbered footnotes use attrs.numbered." }, "tool": null, "subkind": null, "framework": null }, "subkind": null, "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.698+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "d812a83a-99aa-4f2e-9e34-87c324c7a6cb", "parentComponentId": null }, { "bbox": { "h": 0.35, "w": 0.8, "x": 0.09, "y": 0.31 }, "kind": "table", "text": "Arithmetic Mean Returns table showing returns for US, Canada, UK, France, Germany, Japan, Australia across 5 time periods in USD and Local Currency.", "attrs": null, "canon": { "kind": { "name": "Table", "slug": "table", "status": "active", "canonId": "019de52c-f9c8-7148-8119-eaac9594cd28", "version": 1, "description": "Tabular data layout." }, "tool": null, "subkind": { "name": "Data table", "slug": "data", "status": "active", "canonId": "019de52d-02d5-75b8-8abf-88e92bf63569", "version": 1, "description": null }, "framework": null }, "subkind": "data", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.698+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "867bbfcb-fcd9-4876-8a52-1c2e59cb9a2c", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.4, "x": 0.09, "y": 0.18 }, "kind": "title", "text": "The Market Risk Premium (cont.)", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:03.698+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "f58d7675-d0fd-40d1-8a3b-5088e9764455", "parentComponentId": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 24, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 11, "name": "Evidence & Proof", "beatId": "75553425-a586-4b14-bbb5-81d2291f030e", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Evidence & Proof", "slug": "consultants-gambit-evidence-proof", "status": "active", "canonId": "019dd9b8-07b1-7688-8e1e-7637fec3802a", "version": 1, "description": null }, "evidence": "The document provides detailed methodologies for calculating the discount rate, cost of equity capital, and equity beta, serving as evidence and proof for the DCF analysis.", "position": 2, "isPrimaryArc": true, "parentBeatType": { "name": "Evidence", "slug": "evidence", "status": "active", "canonId": "019dd9b8-03f9-772a-b84a-4f07b415b77a", "version": 1, "description": "A dedicated proof beat exists in only ~4 arcs (Gambit, Sequoia, AIDA, Monroes). Other arcs embed evidence inline within development." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 24, "type": "setup", "title": "The slide provides a practical guide for financial analysts to sanity-check CAPM outputs using external data sources like Value Line.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "dense", "densityScore": 62, "componentCount": 6, "textChars": 1903, "nDataPoints": 0, "notes": "The slide provides a practical guide for financial analysts to sanity-check CAPM outputs using external data sources like Value Line.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:09.287+00", "seconds": 8.669, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/24", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-24", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.185, "w": 0.81, "x": 0.095, "y": 0.363 }, "kind": "list", "text": "Return on the market (RM) in CAPM can be checked by using Value Line or another source of projected return on the market.\nValue Line provides weekly median dividend yields and projected 3 to 5 year capital appreciation for the 1,700 stocks in its data base. Using the dividend discount model,(1) you can impute a projected return on the market by adding Value Line estimates of the dividend yield (in percent) to the annual capital appreciation (in percent).\nExpected market risk premium (RM-RF) can be determined by subtracting the current yield on 20-year Treasuries from the projected return on the market.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:09.287+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "7241ac28-5585-4e2d-816c-fb266fdf5312", "parentComponentId": null }, { "bbox": { "h": 0.125, "w": 0.81, "x": 0.095, "y": 0.585 }, "kind": "list", "text": "The cost of equity for public companies can be checked directly.(2)\nReview recent analysts' reports for 3 to 5 year company projections and calculate the rate of return based on the dividend discount model.\nIf the Company is in Value Line's data base, consider Value Line's estimate of the Company's projected annual return over the next 3 to 5 years.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:09.287+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "eb25d80b-d13b-4a4a-a05b-10ccdc53b433", "parentComponentId": null }, { "bbox": { "h": 0.075, "w": 0.81, "x": 0.095, "y": 0.243 }, "kind": "paragraph", "text": "Because the market risk premium used in CAPM is based on the historical relationship between the return on the market portfolio (RM) and the return on US Treasuries (RF), it may be useful to check these inputs and the resulting cost of equity calculation with projected rates of return.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:09.287+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "31b8c674-987b-4263-bc6b-dc780136d6a9", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.81, "x": 0.095, "y": 0.763 }, "kind": "paragraph", "text": "While it is unlikely that the cost of equity from CAPM would coincide exactly with the projected rates of return for the market or the subject company using the dividend discount model, major differences in results should be explained.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:09.287+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "454520ba-8210-46fa-8c08-b7adcc448eb3", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.81, "x": 0.095, "y": 0.868 }, "kind": "source-note", "text": "(1) Based on the dividend discount model KE = D/P + g, where KE = cost of equity, D = annual dividend, P = stock price, and g = annual growth in dividends.\n(2) If betas of comparable companies are used to estimate the subject company's beta, the cost of equity for the subject company can be checked by calculating the comparable company average rate of return based on the dividend discount model.", "attrs": { "numbered": true }, "canon": { "kind": { "name": "Source note", "slug": "source-note", "status": "active", "canonId": "23484952-494b-4a5e-b1ad-550d0d70e948", "version": 1, "description": "Attribution / source / caveat placed at the slide footer. Numbered footnotes use attrs.numbered." }, "tool": null, "subkind": null, "framework": null }, "subkind": null, "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:09.287+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "aee21216-8247-4048-8981-90eb9ab4b7eb", "parentComponentId": null }, { "bbox": { "h": 0.035, "w": 0.395, "x": 0.095, "y": 0.178 }, "kind": "title", "text": "Checking the CAPM Result", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:09.287+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "f485119b-0bd5-4d62-aa6d-19ba5e09d4c2", "parentComponentId": null } ], "metrics": [], "tools": [], "frameworks": [ { "matchId": "b3ea945e-6938-4ab1-a975-24ee9488a60f", "evidence": "Mentioned in text and footnote as the primary method for checking CAPM results.", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:09.287+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 24, "frameworkName": "Dividend Discount Model" } ], "arcBeats": [ { "to": 24, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 11, "name": "Evidence & Proof", "beatId": "75553425-a586-4b14-bbb5-81d2291f030e", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Evidence & Proof", "slug": "consultants-gambit-evidence-proof", "status": "active", "canonId": "019dd9b8-07b1-7688-8e1e-7637fec3802a", "version": 1, "description": null }, "evidence": "The document provides detailed methodologies for calculating the discount rate, cost of equity capital, and equity beta, serving as evidence and proof for the DCF analysis.", "position": 2, "isPrimaryArc": true, "parentBeatType": { "name": "Evidence", "slug": "evidence", "status": "active", "canonId": "019dd9b8-03f9-772a-b84a-4f07b415b77a", "version": 1, "description": "A dedicated proof beat exists in only ~4 arcs (Gambit, Sequoia, AIDA, Monroes). Other arcs embed evidence inline within development." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [ { "to": 28, "from": 24, "loop": { "name": "42_hypothesis_test", "slug": "42-hypothesis-test", "status": "active", "bestFor": "Strategy validation, due diligence, research presentations", "canonId": "019dd956-76fd-7577-8bcd-d7d39f7c13a8", "version": 1, "bodyDocId": "019df22a-2420-77be-bc41-ded96d08cb21", "structure": "The Hypothesis -> Test 1 (Supports/Refutes) -> Test 2 (Supports/Refutes) -> Conclusion (Validated/Pivoted)", "description": "State a hypothesis upfront, then systematically prove or disprove it with evidence", "familyLabel": null }, "matchId": "5f28bbfa-1e61-48e1-b571-ef191a5fe9e2", "evidence": "The document presents methodologies for calculating terminal value and applying DCF to foreign investments, testing the hypothesis of DCF valuation.", "position": 1, "objective": "To test the hypothesis of DCF valuation", "confidence": 0.6, "extraction": { "at": "2026-07-16 22:04:29.063961+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": "doc-narrative-v1" } } ], "locked": true }, { "page": 25, "type": "setup", "title": "Part of a DCF Primer deck.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "dense", "densityScore": 58, "componentCount": 6, "textChars": 1132, "nDataPoints": 0, "notes": "Part of a DCF Primer deck.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:08.268+00", "seconds": 7.549, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/25", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-25", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.15, "w": 0.82, "x": 0.09, "y": 0.36 }, "kind": "list", "text": "There are generally three principal categories of debt which may be valued separately: Non-convertible, long-term debt; Convertible debt; Short-term debt.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:08.268+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "fb145c5a-a22c-4675-993f-ca14bf82966e", "parentComponentId": null }, { "bbox": { "h": 0.07, "w": 0.82, "x": 0.09, "y": 0.24 }, "kind": "paragraph", "text": "A company's cost of debt capital is generally calculated as a blended average of yields (weighted by market values) for all tranches of publicly traded debt and a blended average of coupons (weighted by book values) for non-traded debt.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:08.268+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "6bb0985f-ceb9-4b8e-b026-84b7982ff9f6", "parentComponentId": null }, { "bbox": { "h": 0.12, "w": 0.82, "x": 0.09, "y": 0.55 }, "kind": "paragraph", "text": "In certain sectors in which off-balance sheet financing is prevalent (i.e., retailing and airlines), it may be appropriate to include operating leases in debt since they have similar economics to capital leases. \"Capitalizing\" operating leases requires adjustments to income to exclude operating lease expense and replace it with additional interest expense and depreciation on the capitalized lease asset.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:08.268+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "bfaeafea-53d2-4150-8437-5cffbeda377e", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.82, "x": 0.09, "y": 0.69 }, "kind": "paragraph", "text": "In evaluating a company with a rapidly improving or deteriorating credit profile, it may be distortive to use book values as a proxy for market values.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:08.268+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "ea28899d-7e8c-48db-a07f-d7324b327ada", "parentComponentId": null }, { "bbox": { "h": 0.12, "w": 0.82, "x": 0.09, "y": 0.79 }, "kind": "source-note", "text": "(1) The value of non-convertible debt... (2) Treat out-of-the-money... (3) Since some portion... (4) By \"capitalizing\"... (5) Depreciation expense...", "attrs": { "numbered": true }, "canon": { "kind": { "name": "Source note", "slug": "source-note", "status": "active", "canonId": "23484952-494b-4a5e-b1ad-550d0d70e948", "version": 1, "description": "Attribution / source / caveat placed at the slide footer. Numbered footnotes use attrs.numbered." }, "tool": null, "subkind": null, "framework": null }, "subkind": null, "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:08.268+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "45bd244f-4d90-479c-a8e5-b690b08be724", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.48, "x": 0.09, "y": 0.18 }, "kind": "title", "text": "Calculating the Cost of Debt Capital", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:08.268+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "44399dc9-206e-4ec3-8402-7953f066b289", "parentComponentId": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 36, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 25, "name": "Impact & Next Steps", "beatId": "b469779c-88a0-43b8-af3d-b8dac2f148a3", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Impact & Next Steps", "slug": "consultants-gambit-impact-next-steps", "status": "active", "canonId": "019dd9b8-0849-7728-9ee9-fd1609c4c655", "version": 1, "description": null }, "evidence": "The document concludes with examples of DCF analysis and a weighted average cost of capital calculation, illustrating the impact and next steps.", "position": 3, "isPrimaryArc": true, "parentBeatType": { "name": "Resolution", "slug": "resolution", "status": "active", "canonId": "019dd9b8-045d-703b-8dd7-e92aba3ba91b", "version": 1, "description": "How the deck ends. Required in 19/20 arcs. The exception (Sparkline) ends with new bliss which is functionally a resolution." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [ { "to": 28, "from": 24, "loop": { "name": "42_hypothesis_test", "slug": "42-hypothesis-test", "status": "active", "bestFor": "Strategy validation, due diligence, research presentations", "canonId": "019dd956-76fd-7577-8bcd-d7d39f7c13a8", "version": 1, "bodyDocId": "019df22a-2420-77be-bc41-ded96d08cb21", "structure": "The Hypothesis -> Test 1 (Supports/Refutes) -> Test 2 (Supports/Refutes) -> Conclusion (Validated/Pivoted)", "description": "State a hypothesis upfront, then systematically prove or disprove it with evidence", "familyLabel": null }, "matchId": "5f28bbfa-1e61-48e1-b571-ef191a5fe9e2", "evidence": "The document presents methodologies for calculating terminal value and applying DCF to foreign investments, testing the hypothesis of DCF valuation.", "position": 1, "objective": "To test the hypothesis of DCF valuation", "confidence": 0.6, "extraction": { "at": "2026-07-16 22:04:29.063961+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": "doc-narrative-v1" } } ], "locked": true }, { "page": 26, "type": "setup", "title": "Part of a DCF Primer deck.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "dense", "densityScore": 57, "componentCount": 6, "textChars": 1021, "nDataPoints": 0, "notes": "Part of a DCF Primer deck.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:07.992+00", "seconds": 7.079, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/26", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-26", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.08, "w": 0.8, "x": 0.09, "y": 0.84 }, "kind": "disclaimer", "text": "(1) Treat out-of-the-money convertible preferred as straight preferred with no common equity component...", "attrs": null, "canon": { "kind": { "name": "Disclaimer", "slug": "disclaimer", "status": "active", "canonId": "91173477-d91f-4024-bbaf-d4f93e3f82dc", "version": 1, "description": "Legal/cautionary text that occupies most of the body of its slide." }, "tool": null, "subkind": null, "framework": null }, "subkind": null, "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.992+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "d1a1fbd5-7723-4a8f-9844-597d8688021b", "parentComponentId": null }, { "bbox": { "h": 0.12, "w": 0.8, "x": 0.09, "y": 0.67 }, "kind": "list", "text": "The value of all outstanding options and warrants should be included in the calculation of WACC. Value is calculated by assuming all exercisable in-the-money options are exercised and proceeds are used to retire common stock.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.992+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "117fa93a-aa22-4a43-bd11-ece7b0a70496", "parentComponentId": null }, { "bbox": { "h": 0.15, "w": 0.8, "x": 0.09, "y": 0.31 }, "kind": "list", "text": "The cost of non-convertible preferred stock can be estimated by the dividend yield and the value can be estimated by market value. For non-traded preferred stock, the value may be estimated by the liquidation or redemption value. Convertible preferred can be treated as common equity if in-the-money.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.992+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "d4a4b5a7-7577-4351-8eac-301a471f312d", "parentComponentId": null }, { "bbox": { "h": 0.15, "w": 0.8, "x": 0.09, "y": 0.49 }, "kind": "list", "text": "Minority interests should be valued based on the market value of the subsidiary if the subsidiary is public. For non-traded, use comparable companies analysis. The discount rate should be the WACC of the company in which the interest is held.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.992+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "e1dcbd9a-d75b-4867-bc73-0d00cceab23e", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.8, "x": 0.09, "y": 0.23 }, "kind": "paragraph", "text": "A company's WACC should include the after-tax cost of all other non-common equity sources of capital.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.992+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "b837b964-7162-4aa3-942c-939353a0abc9", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.6, "x": 0.09, "y": 0.17 }, "kind": "title", "text": "Calculating the Cost of Other Non-Equity Capital", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.992+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "97003ef1-3f7b-4eda-9968-0de632e1452c", "parentComponentId": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 36, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 25, "name": "Impact & Next Steps", "beatId": "b469779c-88a0-43b8-af3d-b8dac2f148a3", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Impact & Next Steps", "slug": "consultants-gambit-impact-next-steps", "status": "active", "canonId": "019dd9b8-0849-7728-9ee9-fd1609c4c655", "version": 1, "description": null }, "evidence": "The document concludes with examples of DCF analysis and a weighted average cost of capital calculation, illustrating the impact and next steps.", "position": 3, "isPrimaryArc": true, "parentBeatType": { "name": "Resolution", "slug": "resolution", "status": "active", "canonId": "019dd9b8-045d-703b-8dd7-e92aba3ba91b", "version": 1, "description": "How the deck ends. Required in 19/20 arcs. The exception (Sparkline) ends with new bliss which is functionally a resolution." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [ { "to": 28, "from": 24, "loop": { "name": "42_hypothesis_test", "slug": "42-hypothesis-test", "status": "active", "bestFor": "Strategy validation, due diligence, research presentations", "canonId": "019dd956-76fd-7577-8bcd-d7d39f7c13a8", "version": 1, "bodyDocId": "019df22a-2420-77be-bc41-ded96d08cb21", "structure": "The Hypothesis -> Test 1 (Supports/Refutes) -> Test 2 (Supports/Refutes) -> Conclusion (Validated/Pivoted)", "description": "State a hypothesis upfront, then systematically prove or disprove it with evidence", "familyLabel": null }, "matchId": "5f28bbfa-1e61-48e1-b571-ef191a5fe9e2", "evidence": "The document presents methodologies for calculating terminal value and applying DCF to foreign investments, testing the hypothesis of DCF valuation.", "position": 1, "objective": "To test the hypothesis of DCF valuation", "confidence": 0.6, "extraction": { "at": "2026-07-16 22:04:29.063961+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": "doc-narrative-v1" } } ], "locked": true }, { "page": 27, "type": "setup", "title": "Part of a DCF Primer document.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "balanced", "densityScore": 47, "componentCount": 4, "textChars": 1836, "nDataPoints": 0, "notes": "Part of a DCF Primer document.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:05.129+00", "seconds": 4.001, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/27", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-27", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.45, "w": 0.81, "x": 0.095, "y": 0.365 }, "kind": "list", "text": "The terminal value should generally reflect a public market valuation when valuing a company for an IPO.\nThe terminal value should also reflect a public market valuation when valuing a company for a strategic acquisition in which the buyer does not plan to sell the target in the foreseeable future and for which synergies are explicitly included in the forecast.\nWhen valuing an acquisition target for a buyer that is expected to “flip” the acquired company, it may be appropriate to use a private market value for terminal value if synergies are not included in the cash flow projections. Note that private market multiples usually reflect synergy value, trophy value, the impact of defensive posturing, etc., and this value should not be double-counted through the explicit inclusion of synergies in the forecast.\nThe terminal value multiple should reflect long-term growth expectations beyond the forecast horizon and should be applied to a normalized level of cash flow. The terminal value multiple may be less than the current EBITDA multiple to the extent that the company is in a high-growth industry or the current multiples are inflated due to short-term fads in the marketplace.\nCertain industry exceptions may exist for which it may be more appropriate to use multiples of revenue, EBIT or net income as the basis for calculating terminal value.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:05.129+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "d2b97c70-3273-460a-9382-fbec9fda1081", "parentComponentId": null }, { "bbox": { "h": 0.105, "w": 0.81, "x": 0.095, "y": 0.231 }, "kind": "paragraph", "text": "Terminal value should be calculated using one or more of several methods, including comparable company multiples (e.g., EBITDA, EBIT and unlevered net income) and should be checked with the perpetuity growth method. The type of multiples used (i.e., public market versus private market(1)) will depend on the objectives of the DCF analysis (i.e., IPO versus M&A deal).", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:05.129+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "1e557538-6802-4ebe-bdcf-34c9e4edd219", "parentComponentId": null }, { "bbox": { "h": 0.015, "w": 0.36, "x": 0.095, "y": 0.902 }, "kind": "source-note", "text": "(1) A private market multiple refers to an “acquisition” multiple.", "attrs": null, "canon": { "kind": { "name": "Source note", "slug": "source-note", "status": "active", "canonId": "23484952-494b-4a5e-b1ad-550d0d70e948", "version": 1, "description": "Attribution / source / caveat placed at the slide footer. Numbered footnotes use attrs.numbered." }, "tool": null, "subkind": null, "framework": null }, "subkind": null, "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:05.129+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "5f81a782-a500-4293-af7f-5befe68c9c44", "parentComponentId": null }, { "bbox": { "h": 0.035, "w": 0.618, "x": 0.095, "y": 0.178 }, "kind": "title", "text": "Calculating the Terminal Value—Exit Multiples", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:05.129+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "cdefcedb-218c-445b-a6cb-7c5e7f76b3fc", "parentComponentId": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 36, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 25, "name": "Impact & Next Steps", "beatId": "b469779c-88a0-43b8-af3d-b8dac2f148a3", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Impact & Next Steps", "slug": "consultants-gambit-impact-next-steps", "status": "active", "canonId": "019dd9b8-0849-7728-9ee9-fd1609c4c655", "version": 1, "description": null }, "evidence": "The document concludes with examples of DCF analysis and a weighted average cost of capital calculation, illustrating the impact and next steps.", "position": 3, "isPrimaryArc": true, "parentBeatType": { "name": "Resolution", "slug": "resolution", "status": "active", "canonId": "019dd9b8-045d-703b-8dd7-e92aba3ba91b", "version": 1, "description": "How the deck ends. Required in 19/20 arcs. The exception (Sparkline) ends with new bliss which is functionally a resolution." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [ { "to": 28, "from": 24, "loop": { "name": "42_hypothesis_test", "slug": "42-hypothesis-test", "status": "active", "bestFor": "Strategy validation, due diligence, research presentations", "canonId": "019dd956-76fd-7577-8bcd-d7d39f7c13a8", "version": 1, "bodyDocId": "019df22a-2420-77be-bc41-ded96d08cb21", "structure": "The Hypothesis -> Test 1 (Supports/Refutes) -> Test 2 (Supports/Refutes) -> Conclusion (Validated/Pivoted)", "description": "State a hypothesis upfront, then systematically prove or disprove it with evidence", "familyLabel": null }, "matchId": "5f28bbfa-1e61-48e1-b571-ef191a5fe9e2", "evidence": "The document presents methodologies for calculating terminal value and applying DCF to foreign investments, testing the hypothesis of DCF valuation.", "position": 1, "objective": "To test the hypothesis of DCF valuation", "confidence": 0.6, "extraction": { "at": "2026-07-16 22:04:29.063961+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": "doc-narrative-v1" } } ], "locked": true }, { "page": 28, "type": "setup", "title": "Includes specific formulas for Terminal Value and implied Perpetual Growth Rate.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "dense", "densityScore": 66, "componentCount": 7, "textChars": 1159, "nDataPoints": 0, "notes": "Includes specific formulas for Terminal Value and implied Perpetual Growth Rate.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 20:58:44.86+00", "seconds": 3.724, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/28", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-28", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.15, "w": 0.8, "x": 0.09, "y": 0.47 }, "kind": "list", "text": "A practical limitation to the growing perpetuity formula is that it requires knowledge of the first free cash flow beyond the forecast horizon. If it is assumed that the free cash flow in the final year of the forecast horizon grows at the perpetual growth rate, then the growing perpetuity formula can be rewritten as follows: Perpetual Growth Rate = (TV * r) - FCF / (TV + FCF)", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 20:58:44.86+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "2ef5c923-9713-47b6-b967-29d8ffb7fae6", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.8, "x": 0.09, "y": 0.75 }, "kind": "list", "text": "Above and beyond this, the user should normalize free cash flow for purposes of calculating the perpetual growth rate, such that D&A and CapEx are equal.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 20:58:44.86+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "57eaff20-4f4e-43f0-99bd-fddc85d5ee0f", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.8, "x": 0.09, "y": 0.67 }, "kind": "list", "text": "For modeling purposes, this rewritten formula allows the user to calculate the implied perpetual growth rate in a data table using the iterate function.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 20:58:44.86+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "9d9462ac-dee5-4044-9779-daee87589a76", "parentComponentId": null }, { "bbox": { "h": 0.1, "w": 0.8, "x": 0.09, "y": 0.32 }, "kind": "list", "text": "The formula for a growing perpetuity is: Terminal Value = X / (r - g)", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 20:58:44.86+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "e1a84b01-6a43-4d4e-99dc-bc492e028388", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.8, "x": 0.09, "y": 0.23 }, "kind": "paragraph", "text": "The perpetuity growth method should be used to check the reasonableness of the exit multiple assumption for the terminal value.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 20:58:44.86+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "c9f72bc4-cf93-4071-bd4c-611357c69caa", "parentComponentId": null }, { "bbox": { "h": 0.08, "w": 0.8, "x": 0.09, "y": 0.85 }, "kind": "source-note", "text": "(1) Source: Brealey & Myers, Principles of Corporate Finance, Sixth Edition. (2) Normalized free cash flow is calculated as EBIT plus Non-Deductible Goodwill Amortization less Adjusted Taxes less increase in Working Capital.", "attrs": null, "canon": { "kind": { "name": "Source note", "slug": "source-note", "status": "active", "canonId": "23484952-494b-4a5e-b1ad-550d0d70e948", "version": 1, "description": "Attribution / source / caveat placed at the slide footer. Numbered footnotes use attrs.numbered." }, "tool": null, "subkind": null, "framework": null }, "subkind": null, "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 20:58:44.86+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "930cf8fe-59a5-4ec1-ad1e-01e08959e18f", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.6, "x": 0.09, "y": 0.17 }, "kind": "title", "text": "Calculating the Terminal Value—Perpetuity Growth Method", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 20:58:44.86+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "6abcf9e5-8ea0-47eb-9a2e-30129547e69b", "parentComponentId": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 36, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 25, "name": "Impact & Next Steps", "beatId": "b469779c-88a0-43b8-af3d-b8dac2f148a3", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Impact & Next Steps", "slug": "consultants-gambit-impact-next-steps", "status": "active", "canonId": "019dd9b8-0849-7728-9ee9-fd1609c4c655", "version": 1, "description": null }, "evidence": "The document concludes with examples of DCF analysis and a weighted average cost of capital calculation, illustrating the impact and next steps.", "position": 3, "isPrimaryArc": true, "parentBeatType": { "name": "Resolution", "slug": "resolution", "status": "active", "canonId": "019dd9b8-045d-703b-8dd7-e92aba3ba91b", "version": 1, "description": "How the deck ends. Required in 19/20 arcs. The exception (Sparkline) ends with new bliss which is functionally a resolution." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [ { "to": 28, "from": 24, "loop": { "name": "42_hypothesis_test", "slug": "42-hypothesis-test", "status": "active", "bestFor": "Strategy validation, due diligence, research presentations", "canonId": "019dd956-76fd-7577-8bcd-d7d39f7c13a8", "version": 1, "bodyDocId": "019df22a-2420-77be-bc41-ded96d08cb21", "structure": "The Hypothesis -> Test 1 (Supports/Refutes) -> Test 2 (Supports/Refutes) -> Conclusion (Validated/Pivoted)", "description": "State a hypothesis upfront, then systematically prove or disprove it with evidence", "familyLabel": null }, "matchId": "5f28bbfa-1e61-48e1-b571-ef191a5fe9e2", "evidence": "The document presents methodologies for calculating terminal value and applying DCF to foreign investments, testing the hypothesis of DCF valuation.", "position": 1, "objective": "To test the hypothesis of DCF valuation", "confidence": 0.6, "extraction": { "at": "2026-07-16 22:04:29.063961+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": "doc-narrative-v1" } } ], "locked": true }, { "page": 29, "type": "setup", "title": "Bear Stearns DCF Primer slide 26.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "dense", "densityScore": 57, "componentCount": 6, "textChars": 1070, "nDataPoints": 0, "notes": "Bear Stearns DCF Primer slide 26.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:05.291+00", "seconds": 4.019, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/29", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-29", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.12, "w": 0.81, "x": 0.095, "y": 0.57 }, "kind": "list", "text": "As a general matter, all foreign cash flows should be assumed to be available for distribution and included in discounted cash flows. However, under certain circumstances, there may be a cash cost to repatriation of foreign earnings.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:05.291+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "277b5296-fdf3-447e-b253-03d30e0e9c8b", "parentComponentId": null }, { "bbox": { "h": 0.12, "w": 0.78, "x": 0.12, "y": 0.69 }, "kind": "list", "text": "If dividends are paid (i.e., not reinvested in the firm), a withholding tax may apply to distributions outside the country. Under certain circumstances, taxes paid due to foreign withholding taxes may be credited as a reduction to US federal income taxes.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:05.291+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "b0ee6032-6ed5-437a-a103-09feb5fd2e5a", "parentComponentId": null }, { "bbox": { "h": 0.15, "w": 0.81, "x": 0.095, "y": 0.33 }, "kind": "list", "text": "Forecast all cash flow in terms of the currency where it originates, including inflation expectations. Inflation predictions may be based on the term structure of interest rates. Risk is greater in markets with price controls.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:05.291+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "c3113ccd-35a1-4386-bd21-b3087b7f425d", "parentComponentId": null }, { "bbox": { "h": 0.08, "w": 0.81, "x": 0.095, "y": 0.485 }, "kind": "list", "text": "Currency exchange rates may be predicted based on implied forward foreign exchange rates or, alternatively, a comparison of long-term nominal risk-free rates to determine the currency depreciation rate.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:05.291+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "dbfa770b-9fe4-4ff4-a8c3-9bb3626a56ff", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.81, "x": 0.095, "y": 0.245 }, "kind": "paragraph", "text": "DCF is a useful tool in global analysis as long as assumptions are consistent and the market is properly defined.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:05.291+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "05b7ee9d-0629-4b24-be1d-bfdfb2520373", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.56, "x": 0.095, "y": 0.185 }, "kind": "title", "text": "Application of DCF to Foreign Investments", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:05.291+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "69874349-8a78-4f2f-8c35-086c73bf6f27", "parentComponentId": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 36, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 25, "name": "Impact & Next Steps", "beatId": "b469779c-88a0-43b8-af3d-b8dac2f148a3", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Impact & Next Steps", "slug": "consultants-gambit-impact-next-steps", "status": "active", "canonId": "019dd9b8-0849-7728-9ee9-fd1609c4c655", "version": 1, "description": null }, "evidence": "The document concludes with examples of DCF analysis and a weighted average cost of capital calculation, illustrating the impact and next steps.", "position": 3, "isPrimaryArc": true, "parentBeatType": { "name": "Resolution", "slug": "resolution", "status": "active", "canonId": "019dd9b8-045d-703b-8dd7-e92aba3ba91b", "version": 1, "description": "How the deck ends. Required in 19/20 arcs. The exception (Sparkline) ends with new bliss which is functionally a resolution." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 30, "type": "setup", "title": "Part of a Bear Stearns DCF Primer document.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "dense", "densityScore": 52, "componentCount": 5, "textChars": 1363, "nDataPoints": 0, "notes": "Part of a Bear Stearns DCF Primer document.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:10.694+00", "seconds": 9.312, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/30", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-30", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.35, "w": 0.82, "x": 0.12, "y": 0.31 }, "kind": "list", "text": "Use the country's long-term Treasury bond to approximate the risk-free rate.\nUse one of the sources listed on page 13 for comparable company betas.\nCalculate the market risk premium using the same definition of the market that was used to calculate beta and the same long-term Treasury bond that was used to estimate the risk-free rate.\nThe local stock market may be used as the market proxy if a long enough time series exists and it is sufficiently liquid or, alternatively, it may be appropriate to use a global index. The international market risk premium data provided on page 20 is based on returns on Morgan Stanley Capital International (MSCI) country-specific equity indices against long-term income returns on each country's long-term government bond.\nA point of reference to estimate discount rates is to refer to venture capitalists' required rates of return on similar investments.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:10.694+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "6a046d11-0a20-4276-be80-93cad2564f0d", "parentComponentId": null }, { "bbox": { "h": 0.08, "w": 0.85, "x": 0.095, "y": 0.625 }, "kind": "list", "text": "It may be appropriate to use other valuation methodologies in conjunction with DCF to value foreign companies since US betas are not applicable in foreign markets, and DCF values in foreign currencies may not be directly convertible to values in US dollars.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:10.694+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "7c4e49d8-15a3-45f5-afd8-159d8af41b03", "parentComponentId": null }, { "bbox": { "h": 0.05, "w": 0.85, "x": 0.095, "y": 0.245 }, "kind": "list", "text": "Calculate a foreign currency discount rate which reflects local political risk, foreign investment risk and currency exchange risk.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:10.694+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "be13d8c4-e7e4-4060-afbb-28d7258b124e", "parentComponentId": null }, { "bbox": { "h": 0.035, "w": 0.64, "x": 0.095, "y": 0.178 }, "kind": "title", "text": "Application of DCF to Foreign Investments (cont.)", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:10.694+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "0deeb3db-b9bb-41a6-a9b6-bb0b9a9eee5f", "parentComponentId": null }, { "bbox": { "h": 0.025, "w": 0.33, "x": 0.62, "y": 0.125 }, "kind": "title", "text": "Discounted Cash Flow Methodology", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Subtitle", "slug": "subtitle", "status": "active", "canonId": "019de52c-fb09-739d-900c-815b0d9ac526", "version": 1, "description": null }, "framework": null }, "subkind": "subtitle", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:10.694+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "27fa265d-1b5d-409d-8480-a758b1be3bb0", "parentComponentId": null } ], "metrics": [], "tools": [ { "tool": { "name": "Valuation: DCF", "slug": "dcf", "status": "active", "bestFor": null, "canonId": "019df269-2031-7273-9014-0c70beb91e11", "version": 1, "bodyDocId": "019df269-200e-76ea-8883-6ee35d39c836", "description": "You project free cash flows over an explicit forecast period (typically", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "5b97e2d7-9662-4610-b6a7-7ee6d2b73207", "evidence": "Application of DCF to Foreign Investments", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-16 23:19:28.25959+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 30, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null } ], "frameworks": [], "arcBeats": [ { "to": 36, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 25, "name": "Impact & Next Steps", "beatId": "b469779c-88a0-43b8-af3d-b8dac2f148a3", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Impact & Next Steps", "slug": "consultants-gambit-impact-next-steps", "status": "active", "canonId": "019dd9b8-0849-7728-9ee9-fd1609c4c655", "version": 1, "description": null }, "evidence": "The document concludes with examples of DCF analysis and a weighted average cost of capital calculation, illustrating the impact and next steps.", "position": 3, "isPrimaryArc": true, "parentBeatType": { "name": "Resolution", "slug": "resolution", "status": "active", "canonId": "019dd9b8-045d-703b-8dd7-e92aba3ba91b", "version": 1, "description": "How the deck ends. Required in 19/20 arcs. The exception (Sparkline) ends with new bliss which is functionally a resolution." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 31, "type": "setup", "title": "Part of a DCF Primer document from Bear Stearns.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "dense", "densityScore": 67, "componentCount": 7, "textChars": 1210, "nDataPoints": 0, "notes": "Part of a DCF Primer document from Bear Stearns.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:04.966+00", "seconds": 3.269, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/31", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-31", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.045, "w": 0.81, "x": 0.095, "y": 0.542 }, "kind": "list", "text": "Alternatively, adjusted net present value can be applied to address a changing capital structure without having to adjust the company's WACC each year (see p. 29).", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:04.966+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "2af85dcf-bf53-4f63-90ca-6b2121050506", "parentComponentId": null }, { "bbox": { "h": 0.045, "w": 0.81, "x": 0.095, "y": 0.622 }, "kind": "list", "text": "To the extent that lack of marketability/liquidity or minority position is not accounted for in either cost of capital or in the cash flows, it may be appropriate to discount the resulting valuation.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:04.966+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "6b0e9d2b-97aa-4770-8528-58216ad16ad9", "parentComponentId": null }, { "bbox": { "h": 0.165, "w": 0.81, "x": 0.095, "y": 0.363 }, "kind": "list", "text": "To value a firm with a rapidly changing capital structure (i.e., an LBO), it will generally be appropriate to use a different WACC during different phases of the forecast period as financial leverage changes.\nIn general, a company should be evaluated based on a forward looking capital structure.\nIf the WACC assumption is based on a dramatic change in capital structure, it may be appropriate to factor in transaction costs.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:04.966+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "6dd7e411-9ba0-4e81-a51c-5fdaac2b68c2", "parentComponentId": null }, { "bbox": { "h": 0.025, "w": 0.81, "x": 0.095, "y": 0.702 }, "kind": "list", "text": "Regulated industries (e.g., utilities) may require adjustments to cost of capital estimates due to rate setting.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:04.966+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "b6c04840-d6e9-42ba-888c-e0a1c1063eb9", "parentComponentId": null }, { "bbox": { "h": 0.065, "w": 0.81, "x": 0.095, "y": 0.244 }, "kind": "paragraph", "text": "While the preceding valuation guidelines generally apply to most situations, it may be appropriate to use different assumptions for companies with rapidly changing capital structures, start-up companies or highly regulated firms.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:04.966+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "24157d31-60c8-43de-b4a6-257d275b8775", "parentComponentId": null }, { "bbox": { "h": 0.032, "w": 0.635, "x": 0.095, "y": 0.178 }, "kind": "title", "text": "Other Exceptions to the General Application of DCF", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:04.966+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "10c6dda2-5317-4408-91d0-68c857608215", "parentComponentId": null }, { "bbox": { "h": 0.02, "w": 0.282, "x": 0.623, "y": 0.125 }, "kind": "title", "text": "Discounted Cash Flow Methodology", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Subtitle", "slug": "subtitle", "status": "active", "canonId": "019de52c-fb09-739d-900c-815b0d9ac526", "version": 1, "description": null }, "framework": null }, "subkind": "subtitle", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:04.966+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "dc734143-c1fc-4cb8-8942-9f2eeca459ac", "parentComponentId": null } ], "metrics": [], "tools": [ { "tool": { "name": "Valuation: DCF", "slug": "dcf", "status": "active", "bestFor": null, "canonId": "019df269-2031-7273-9014-0c70beb91e11", "version": 1, "bodyDocId": "019df269-200e-76ea-8883-6ee35d39c836", "description": "You project free cash flows over an explicit forecast period (typically", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "c6a196e6-70c6-4541-9965-7425511db96f", "evidence": "Other Exceptions to the General Application of DCF", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-16 23:19:28.3404+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 31, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null } ], "frameworks": [], "arcBeats": [ { "to": 36, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 25, "name": "Impact & Next Steps", "beatId": "b469779c-88a0-43b8-af3d-b8dac2f148a3", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Impact & Next Steps", "slug": "consultants-gambit-impact-next-steps", "status": "active", "canonId": "019dd9b8-0849-7728-9ee9-fd1609c4c655", "version": 1, "description": null }, "evidence": "The document concludes with examples of DCF analysis and a weighted average cost of capital calculation, illustrating the impact and next steps.", "position": 3, "isPrimaryArc": true, "parentBeatType": { "name": "Resolution", "slug": "resolution", "status": "active", "canonId": "019dd9b8-045d-703b-8dd7-e92aba3ba91b", "version": 1, "description": "How the deck ends. Required in 19/20 arcs. The exception (Sparkline) ends with new bliss which is functionally a resolution." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 32, "type": "setup", "title": "Bear Stearns branded slide from a DCF Primer document.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "dense", "densityScore": 72, "componentCount": 8, "textChars": 1066, "nDataPoints": 0, "notes": "Bear Stearns branded slide from a DCF Primer document.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:07.047+00", "seconds": 5.054, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/32", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-32", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.035, "w": 0.71, "x": 0.145, "y": 0.59 }, "kind": "callout", "text": "Enterprise value = (value of the firm if all equity financed) + (value of the tax shield)", "attrs": null, "canon": { "kind": { "name": "Callout", "slug": "callout", "status": "active", "canonId": "019de52c-f8d3-761a-8953-7d37080de5e2", "version": 1, "description": "Highlighted callout box." }, "tool": null, "subkind": { "name": "Primary callout", "slug": "primary", "status": "active", "canonId": "019de52c-fbd1-70eb-a9ce-8997f8674c1d", "version": 1, "description": null }, "framework": null }, "subkind": "primary", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.047+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "2972d513-cbcf-419f-a477-dbd8e539eba6", "parentComponentId": null }, { "bbox": { "h": 0.035, "w": 0.81, "x": 0.095, "y": 0.325 }, "kind": "list", "text": "Traditional DCF analysis using WACC assumes a constant capital structure measured by the ratio of debt to equity.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.047+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "2b61cd19-c0a8-48e9-bbd7-adaf23ce4f76", "parentComponentId": null }, { "bbox": { "h": 0.075, "w": 0.785, "x": 0.12, "y": 0.475 }, "kind": "list", "text": "By definition, changes in the capital structure would change the company's WACC year to year.\nAll else equal, WACC is affected by the tax shield associated with debt financing.\nTherefore, the value of the firm is equal to the value of the entity if all equity financed plus the value of the tax shield.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.047+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "8717eeaf-3d30-4e20-8cb2-63e17a235870", "parentComponentId": null }, { "bbox": { "h": 0.02, "w": 0.665, "x": 0.095, "y": 0.665 }, "kind": "list", "text": "Step 1: Discount unlevered free cash flows at the company's cost of equity.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.047+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "c68f2e95-865e-4fa5-9b63-1131acf76b30", "parentComponentId": null }, { "bbox": { "h": 0.075, "w": 0.75, "x": 0.095, "y": 0.715 }, "kind": "list", "text": "Step 2: Calculate the tax shield.\nEstimate tax shield by multiplying interest expense by the company's marginal tax rate.\nDiscount the tax shield at the company's after-tax cost of debt.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.047+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "de197c90-32c7-4500-b6d2-a3760c701789", "parentComponentId": null }, { "bbox": { "h": 0.035, "w": 0.81, "x": 0.095, "y": 0.41 }, "kind": "list", "text": "When a company's capital structure changes over time (i.e., an LBO), it is inconsistent to apply the same WACC to period cash flows.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.047+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "f6c54656-2163-415f-b16f-679344af9650", "parentComponentId": null }, { "bbox": { "h": 0.035, "w": 0.81, "x": 0.095, "y": 0.24 }, "kind": "paragraph", "text": "The adjusted net present value takes into consideration changes to the capital structure without having to adjust the company's WACC each year.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.047+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "c485b20c-75ce-4717-9e9f-3e1254402aef", "parentComponentId": null }, { "bbox": { "h": 0.025, "w": 0.395, "x": 0.095, "y": 0.185 }, "kind": "title", "text": "Adjusted Net Present Value", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:07.047+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "213acf27-060e-4039-8b67-340f3a2c16ef", "parentComponentId": null } ], "metrics": [], "tools": [ { "tool": { "name": "Valuation: DCF", "slug": "dcf", "status": "active", "bestFor": null, "canonId": "019df269-2031-7273-9014-0c70beb91e11", "version": 1, "bodyDocId": "019df269-200e-76ea-8883-6ee35d39c836", "description": "You project free cash flows over an explicit forecast period (typically", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "2562deea-7fc4-4597-ba7f-d0354251d47f", "evidence": "Adjusted Net Present Value takes into consideration changes to the capital structure", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-16 23:19:28.420712+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 32, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null }, { "tool": { "name": "Valuation: LBO math", "slug": "lbo-math", "status": "active", "bestFor": null, "canonId": "019df269-212c-732d-a38c-b9513acf723c", "version": 1, "bodyDocId": "019df269-2109-77fd-9ee6-fbbecf40d439", "description": "You model the target as if a private equity buyer were acquiring it,", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "70a3b1e3-aa36-450f-a3f9-e26d7dd4273f", "evidence": "To value a firm with a rapidly changing capital structure (i.e., an LBO)", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.7, "extraction": { "at": "2026-07-16 23:19:28.460696+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 32, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null } ], "frameworks": [], "arcBeats": [ { "to": 36, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 25, "name": "Impact & Next Steps", "beatId": "b469779c-88a0-43b8-af3d-b8dac2f148a3", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Impact & Next Steps", "slug": "consultants-gambit-impact-next-steps", "status": "active", "canonId": "019dd9b8-0849-7728-9ee9-fd1609c4c655", "version": 1, "description": null }, "evidence": "The document concludes with examples of DCF analysis and a weighted average cost of capital calculation, illustrating the impact and next steps.", "position": 3, "isPrimaryArc": true, "parentBeatType": { "name": "Resolution", "slug": "resolution", "status": "active", "canonId": "019dd9b8-045d-703b-8dd7-e92aba3ba91b", "version": 1, "description": "How the deck ends. Required in 19/20 arcs. The exception (Sparkline) ends with new bliss which is functionally a resolution." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 33, "type": "setup", "title": "Part of a Bear Stearns DCF Primer deck.", "function": "present_framework", "rawType": "appendix_methodology", "block": null, "metadata": { "slideType": "appendix_methodology", "slideTypeCanon": { "name": "Appendix methodology", "slug": "appendix_methodology", "status": "active", "canonId": "019de52d-07d9-726c-8599-167f2d2ffaa7", "version": 1, "description": null }, "function": "present_framework", "functionCanon": { "name": "Present framework", "slug": "present_framework", "status": "active", "canonId": "019de52d-1403-7667-9100-d2ac6709f750", "version": 1, "description": null }, "density": "dense", "densityScore": 58, "componentCount": 6, "textChars": 1161, "nDataPoints": 0, "notes": "Part of a Bear Stearns DCF Primer deck.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:05.571+00", "seconds": 3.323, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/33", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-33", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.06, "w": 0.85, "x": 0.095, "y": 0.66 }, "kind": "list", "text": "To the extent that non-operating income is significant and is derived from activities which have a different risk profile from the operations being valued, these non-operating assets should be valued separately.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:05.571+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "46bfd8cb-7168-4aad-b950-c46ce27e9ea7", "parentComponentId": null }, { "bbox": { "h": 0.15, "w": 0.85, "x": 0.095, "y": 0.33 }, "kind": "list", "text": "The value of non-cash generating assets may be based on appraisals or a liquidation approach. Asset appraisals may be obtained from company management or independent appraisers. Negotiations regarding planned sales of the assets should be considered. Book values of non-cash generating assets may be available in company financials.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:05.571+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "df081be8-499d-4071-88eb-b3aa017d860c", "parentComponentId": null }, { "bbox": { "h": 0.15, "w": 0.85, "x": 0.095, "y": 0.5 }, "kind": "list", "text": "The value of the assets should not already be included in the value of the operations. If the non-cash generating assets are characteristic of the industry, the value of the assets may already be incorporated into the stock prices of selected comparable companies which may have been used as the basis for estimating the terminal value multiple.", "attrs": null, "canon": { "kind": { "name": "List", "slug": "list", "status": "active", "canonId": "019de52c-f94b-779b-a53b-fd4904a5f4d2", "version": 1, "description": "Bullet or numbered list." }, "tool": null, "subkind": { "name": "Bullet list", "slug": "bullet", "status": "active", "canonId": "019de52c-fc98-7169-a083-5cab805076ca", "version": 1, "description": null }, "framework": null }, "subkind": "bullet", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:05.571+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "f6a6070e-337e-473f-a220-b010db60d5a3", "parentComponentId": null }, { "bbox": { "h": 0.06, "w": 0.85, "x": 0.095, "y": 0.24 }, "kind": "paragraph", "text": "When appropriate, significant non-cash generating assets (e.g., real estate) and non-operating assets may need to be valued separately and added to the DCF value of a company's core assets.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:05.571+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "2e62660d-572e-4797-88a3-8c531a20ae1c", "parentComponentId": null }, { "bbox": { "h": 0.04, "w": 0.65, "x": 0.095, "y": 0.18 }, "kind": "title", "text": "Valuing Non-Cash Generating and Non-Operating Assets", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:05.571+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "3417fcb2-e5f1-41b5-bcae-3a4c1e8eac78", "parentComponentId": null }, { "bbox": { "h": 0.02, "w": 0.32, "x": 0.62, "y": 0.125 }, "kind": "title", "text": "Discounted Cash Flow Methodology", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Subtitle", "slug": "subtitle", "status": "active", "canonId": "019de52c-fb09-739d-900c-815b0d9ac526", "version": 1, "description": null }, "framework": null }, "subkind": "subtitle", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:05.571+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "9f5e1f37-1422-41f4-a3a1-f05a9fdbfcd5", "parentComponentId": null } ], "metrics": [], "tools": [ { "tool": { "name": "Valuation: DCF", "slug": "dcf", "status": "active", "bestFor": null, "canonId": "019df269-2031-7273-9014-0c70beb91e11", "version": 1, "bodyDocId": "019df269-200e-76ea-8883-6ee35d39c836", "description": "You project free cash flows over an explicit forecast period (typically", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "90c2fc09-d4b6-4ef3-bb21-af85683bc2d8", "evidence": "Valuing Non-Cash Generating and Non-Operating Assets", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-16 23:19:28.540819+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 33, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null } ], "frameworks": [], "arcBeats": [ { "to": 36, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 25, "name": "Impact & Next Steps", "beatId": "b469779c-88a0-43b8-af3d-b8dac2f148a3", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Impact & Next Steps", "slug": "consultants-gambit-impact-next-steps", "status": "active", "canonId": "019dd9b8-0849-7728-9ee9-fd1609c4c655", "version": 1, "description": null }, "evidence": "The document concludes with examples of DCF analysis and a weighted average cost of capital calculation, illustrating the impact and next steps.", "position": 3, "isPrimaryArc": true, "parentBeatType": { "name": "Resolution", "slug": "resolution", "status": "active", "canonId": "019dd9b8-045d-703b-8dd7-e92aba3ba91b", "version": 1, "description": "How the deck ends. Required in 19/20 arcs. The exception (Sparkline) ends with new bliss which is functionally a resolution." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 34, "type": "analysis", "title": "Includes five distinct sensitivity tables related to DCF valuation metrics.", "function": "analyze_data", "rawType": "appendix_data", "block": null, "metadata": { "slideType": "appendix_data", "slideTypeCanon": { "name": "Appendix data", "slug": "appendix_data", "status": "active", "canonId": "019de52d-078a-745b-9ee4-c15f2f539acd", "version": 1, "description": null }, "function": "analyze_data", "functionCanon": { "name": "Analyze data", "slug": "analyze_data", "status": "active", "canonId": "019de52d-1590-7413-8c82-cc218cff40b4", "version": 1, "description": null }, "density": "balanced", "densityScore": 40, "componentCount": 4, "textChars": 510, "nDataPoints": 125, "notes": "Includes five distinct sensitivity tables related to DCF valuation metrics.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:08.534+00", "seconds": 6.025, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/34", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-34", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.05, "w": 0.65, "x": 0.09, "y": 0.88 }, "kind": "disclaimer", "text": "(1) All values represent the Subject Company stand-alone case and assume no synergies as of June 30, 2001. (2) The range from high to low for the WACC and EBITDA Exit Multiple should be carefully reviewed by the user to determine the appropriate increments. (3) Based on annualized 2001 EBITDA. (4) Assumes a 9.0% discount rate.", "attrs": null, "canon": { "kind": { "name": "Disclaimer", "slug": "disclaimer", "status": "active", "canonId": "91173477-d91f-4024-bbaf-d4f93e3f82dc", "version": 1, "description": "Legal/cautionary text that occupies most of the body of its slide." }, "tool": null, "subkind": null, "framework": null }, "subkind": null, "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:08.534+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "a531b889-abf0-4294-86d7-6e56da4aecce", "parentComponentId": null }, { "bbox": { "h": 0.65, "w": 0.82, "x": 0.09, "y": 0.24 }, "kind": "table", "text": "DCF Sensitivity Analysis tables for Enterprise Value, Equity Value, Implied Growth Rate, and EBITDA multiples.", "attrs": null, "canon": { "kind": { "name": "Table", "slug": "table", "status": "active", "canonId": "019de52c-f9c8-7148-8119-eaac9594cd28", "version": 1, "description": "Tabular data layout." }, "tool": null, "subkind": { "name": "Data table", "slug": "data", "status": "active", "canonId": "019de52d-02d5-75b8-8abf-88e92bf63569", "version": 1, "description": null }, "framework": null }, "subkind": "data", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:08.534+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "b14a5225-248d-4b8e-a4ed-09e39addb798", "parentComponentId": null }, { "bbox": { "h": 0.02, "w": 0.56, "x": 0.09, "y": 0.18 }, "kind": "title", "text": "Example of Discounted Cash Flow Analysis", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:08.534+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "0c498910-9fed-497f-a27d-4e339a26e80f", "parentComponentId": null }, { "bbox": { "h": 0.02, "w": 0.25, "x": 0.75, "y": 0.12 }, "kind": "title", "text": "Discounted Cash Flow Methodology", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Subtitle", "slug": "subtitle", "status": "active", "canonId": "019de52c-fb09-739d-900c-815b0d9ac526", "version": 1, "description": null }, "framework": null }, "subkind": "subtitle", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:08.534+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "4fd8bc5e-add0-4cab-9399-b46524f64202", "parentComponentId": null } ], "metrics": [], "tools": [ { "tool": { "name": "Valuation: DCF", "slug": "dcf", "status": "active", "bestFor": null, "canonId": "019df269-2031-7273-9014-0c70beb91e11", "version": 1, "bodyDocId": "019df269-200e-76ea-8883-6ee35d39c836", "description": "You project free cash flows over an explicit forecast period (typically", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "0e7d6fd8-b4f1-4450-8da9-9ad4ddf2d76a", "evidence": "Example of Discounted Cash Flow Analysis", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-16 23:19:28.62141+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 34, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null } ], "frameworks": [ { "matchId": "bf78f240-ef1e-41fe-b056-ebd8f484e1d7", "evidence": "Multiple tables showing impact of varying WACC and EBITDA exit multiples on valuation outputs.", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:08.534+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 34, "frameworkName": "sensitivity-analysis" } ], "arcBeats": [ { "to": 36, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 25, "name": "Impact & Next Steps", "beatId": "b469779c-88a0-43b8-af3d-b8dac2f148a3", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Impact & Next Steps", "slug": "consultants-gambit-impact-next-steps", "status": "active", "canonId": "019dd9b8-0849-7728-9ee9-fd1609c4c655", "version": 1, "description": null }, "evidence": "The document concludes with examples of DCF analysis and a weighted average cost of capital calculation, illustrating the impact and next steps.", "position": 3, "isPrimaryArc": true, "parentBeatType": { "name": "Resolution", "slug": "resolution", "status": "active", "canonId": "019dd9b8-045d-703b-8dd7-e92aba3ba91b", "version": 1, "description": "How the deck ends. Required in 19/20 arcs. The exception (Sparkline) ends with new bliss which is functionally a resolution." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 35, "type": "analysis", "title": "Includes detailed footnotes explaining valuation assumptions, mid-period convention, and tax treatment.", "function": "analyze_data", "rawType": "appendix_data", "block": null, "metadata": { "slideType": "appendix_data", "slideTypeCanon": { "name": "Appendix data", "slug": "appendix_data", "status": "active", "canonId": "019de52d-078a-745b-9ee4-c15f2f539acd", "version": 1, "description": null }, "function": "analyze_data", "functionCanon": { "name": "Analyze data", "slug": "analyze_data", "status": "active", "canonId": "019de52d-1590-7413-8c82-cc218cff40b4", "version": 1, "description": null }, "density": "balanced", "densityScore": 40, "componentCount": 5, "textChars": 366, "nDataPoints": 80, "notes": "Includes detailed footnotes explaining valuation assumptions, mid-period convention, and tax treatment.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:06.312+00", "seconds": 3.776, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/35", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-35", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.15, "w": 0.82, "x": 0.09, "y": 0.78 }, "kind": "paragraph", "text": "Footnotes (1) through (4) detailing methodology, source, and specific calculation logic.", "attrs": null, "canon": { "kind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "5f2affc0-941d-4d07-959d-4bfc1930cea4", "version": 1, "description": "Single prose block in the body of a slide." }, "tool": null, "subkind": { "name": "Paragraph", "slug": "paragraph", "status": "active", "canonId": "019de52c-fb80-75af-aa5c-a7a4bfac2433", "version": 1, "description": null }, "framework": null }, "subkind": "paragraph", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:06.312+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "43474d0c-1d1a-455e-986d-855d2eb1e9dd", "parentComponentId": null }, { "bbox": { "h": 0.28, "w": 0.82, "x": 0.09, "y": 0.24 }, "kind": "table", "text": "Projected Cash Flows table including Revenue, EBITDA, EBIT, Unlevered Net Income, and FCFF from 2001E to 2005E.", "attrs": null, "canon": { "kind": { "name": "Table", "slug": "table", "status": "active", "canonId": "019de52c-f9c8-7148-8119-eaac9594cd28", "version": 1, "description": "Tabular data layout." }, "tool": null, "subkind": { "name": "Data table", "slug": "data", "status": "active", "canonId": "019de52d-02d5-75b8-8abf-88e92bf63569", "version": 1, "description": null }, "framework": null }, "subkind": "data", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:06.312+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "61584e12-bfd6-4e59-abe3-6286119230c7", "parentComponentId": null }, { "bbox": { "h": 0.25, "w": 0.36, "x": 0.55, "y": 0.51 }, "kind": "table", "text": "DCF Assumptions table including WACC, Terminal EBITDA Multiple, and Tax Rate.", "attrs": null, "canon": { "kind": { "name": "Table", "slug": "table", "status": "active", "canonId": "019de52c-f9c8-7148-8119-eaac9594cd28", "version": 1, "description": "Tabular data layout." }, "tool": null, "subkind": { "name": "Data table", "slug": "data", "status": "active", "canonId": "019de52d-02d5-75b8-8abf-88e92bf63569", "version": 1, "description": null }, "framework": null }, "subkind": "data", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:06.312+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "880894e4-9d3e-4dd6-9590-360f69f8cd8c", "parentComponentId": null }, { "bbox": { "h": 0.25, "w": 0.4, "x": 0.09, "y": 0.51 }, "kind": "table", "text": "Present Value of Equity calculation table.", "attrs": null, "canon": { "kind": { "name": "Table", "slug": "table", "status": "active", "canonId": "019de52c-f9c8-7148-8119-eaac9594cd28", "version": 1, "description": "Tabular data layout." }, "tool": null, "subkind": { "name": "Valuation table", "slug": "valuation", "status": "active", "canonId": "019de52d-034c-74ed-b5c8-22b5e6ac196d", "version": 1, "description": null }, "framework": null }, "subkind": "valuation", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:06.312+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "b5a7dfee-1e99-44b4-ab67-a32d2b1e1893", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.5, "x": 0.09, "y": 0.18 }, "kind": "title", "text": "Example of Discounted Cash Flow Analysis (cont.)", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:06.312+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "8ba13237-905c-4a71-8437-875cf8299e4b", "parentComponentId": null } ], "metrics": [], "tools": [ { "tool": { "name": "Valuation: DCF", "slug": "dcf", "status": "active", "bestFor": null, "canonId": "019df269-2031-7273-9014-0c70beb91e11", "version": 1, "bodyDocId": "019df269-200e-76ea-8883-6ee35d39c836", "description": "You project free cash flows over an explicit forecast period (typically", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "4f97306a-3c06-4ff3-99ac-42ee28001ca1", "evidence": "Example of Discounted Cash Flow Analysis (cont.)", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-16 23:19:28.701396+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 35, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null } ], "frameworks": [ { "matchId": "c110ef7c-caec-4b21-bb3e-71e8ae196a2d", "evidence": "Explicitly titled as DCF methodology and analysis.", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:06.312+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 35, "frameworkName": "Discounted Cash Flow Analysis" } ], "arcBeats": [ { "to": 36, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 25, "name": "Impact & Next Steps", "beatId": "b469779c-88a0-43b8-af3d-b8dac2f148a3", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Impact & Next Steps", "slug": "consultants-gambit-impact-next-steps", "status": "active", "canonId": "019dd9b8-0849-7728-9ee9-fd1609c4c655", "version": 1, "description": null }, "evidence": "The document concludes with examples of DCF analysis and a weighted average cost of capital calculation, illustrating the impact and next steps.", "position": 3, "isPrimaryArc": true, "parentBeatType": { "name": "Resolution", "slug": "resolution", "status": "active", "canonId": "019dd9b8-045d-703b-8dd7-e92aba3ba91b", "version": 1, "description": "How the deck ends. Required in 19/20 arcs. The exception (Sparkline) ends with new bliss which is functionally a resolution." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true }, { "page": 36, "type": "analysis", "title": "Includes detailed footnotes explaining the methodology for beta and WACC components.", "function": "analyze_data", "rawType": "financial_analysis", "block": null, "metadata": { "slideType": "financial_analysis", "slideTypeCanon": { "name": "Financial analysis", "slug": "financial_analysis", "status": "active", "canonId": "019de52d-0b45-709c-bfcc-0cf83dd00f13", "version": 1, "description": null }, "function": "analyze_data", "functionCanon": { "name": "Analyze data", "slug": "analyze_data", "status": "active", "canonId": "019de52d-1590-7413-8c82-cc218cff40b4", "version": 1, "description": null }, "density": "dense", "densityScore": 53, "componentCount": 6, "textChars": 477, "nDataPoints": 60, "notes": "Includes detailed footnotes explaining the methodology for beta and WACC components.", "elementsJson": null, "confidence": 1, "extraction": { "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "at": "2026-05-02 14:31:11.972+00", "seconds": 9.359, "promptVersion": "v2-canon-conditioned" } }, "links": { "slide": "/slides/019de06f-28cb-7211-8997-56898cf5fd3f/36", "deck": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f", "deckAnchor": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f#slide-36", "deckJson": "/decks/019de06f-28cb-7211-8997-56898cf5fd3f.json" }, "components": [ { "bbox": { "h": 0.12, "w": 0.85, "x": 0.09, "y": 0.79 }, "kind": "disclaimer", "text": "Footnotes (1) through (8) detailing data sources and formulas used in the calculations.", "attrs": null, "canon": { "kind": { "name": "Disclaimer", "slug": "disclaimer", "status": "active", "canonId": "91173477-d91f-4024-bbaf-d4f93e3f82dc", "version": 1, "description": "Legal/cautionary text that occupies most of the body of its slide." }, "tool": null, "subkind": null, "framework": null }, "subkind": null, "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:11.972+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "108c26ee-fd22-4161-9b71-20bb6fb24dd4", "parentComponentId": null }, { "bbox": { "h": 0.2, "w": 0.3, "x": 0.09, "y": 0.25 }, "kind": "table", "text": "Assumptions table including tax rates, risk-free rate, market risk premium, and cost of debt.", "attrs": null, "canon": { "kind": { "name": "Table", "slug": "table", "status": "active", "canonId": "019de52c-f9c8-7148-8119-eaac9594cd28", "version": 1, "description": "Tabular data layout." }, "tool": null, "subkind": { "name": "Data table", "slug": "data", "status": "active", "canonId": "019de52d-02d5-75b8-8abf-88e92bf63569", "version": 1, "description": null }, "framework": null }, "subkind": "data", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:11.972+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "535b0fc1-cebc-42ed-9a48-47bca8f1c1f7", "parentComponentId": null }, { "bbox": { "h": 0.25, "w": 0.35, "x": 0.09, "y": 0.52 }, "kind": "table", "text": "WACC calculation steps showing cost of equity and after-tax cost of debt.", "attrs": null, "canon": { "kind": { "name": "Table", "slug": "table", "status": "active", "canonId": "019de52c-f9c8-7148-8119-eaac9594cd28", "version": 1, "description": "Tabular data layout." }, "tool": null, "subkind": { "name": "Data table", "slug": "data", "status": "active", "canonId": "019de52d-02d5-75b8-8abf-88e92bf63569", "version": 1, "description": null }, "framework": null }, "subkind": "data", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:11.972+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "682e4d0c-24d0-458b-8e29-e8cf9a7a036c", "parentComponentId": null }, { "bbox": { "h": 0.25, "w": 0.55, "x": 0.38, "y": 0.25 }, "kind": "table", "text": "Beta Calculation table showing levered/unlevered beta for comparable companies and subject company.", "attrs": null, "canon": { "kind": { "name": "Table", "slug": "table", "status": "active", "canonId": "019de52c-f9c8-7148-8119-eaac9594cd28", "version": 1, "description": "Tabular data layout." }, "tool": null, "subkind": { "name": "Data table", "slug": "data", "status": "active", "canonId": "019de52d-02d5-75b8-8abf-88e92bf63569", "version": 1, "description": null }, "framework": null }, "subkind": "data", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:11.972+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "b4927ed9-ed56-4221-954c-b04c5a3e99cd", "parentComponentId": null }, { "bbox": { "h": 0.25, "w": 0.45, "x": 0.47, "y": 0.52 }, "kind": "table", "text": "WACC Sensitivity Analysis table varying D/(D+E) and Pre-Tax Cost of Debt.", "attrs": null, "canon": { "kind": { "name": "Table", "slug": "table", "status": "active", "canonId": "019de52c-f9c8-7148-8119-eaac9594cd28", "version": 1, "description": "Tabular data layout." }, "tool": null, "subkind": { "name": "Scenario table", "slug": "scenario", "status": "active", "canonId": "019de52d-0374-7778-b2bc-9f279d34d01f", "version": 1, "description": null }, "framework": null }, "subkind": "scenario", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:11.972+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "20fc81e9-7b0f-4090-90b2-b46aec9ae995", "parentComponentId": null }, { "bbox": { "h": 0.03, "w": 0.6, "x": 0.09, "y": 0.18 }, "kind": "title", "text": "Example Weighted Average Cost of Capital Calculation", "attrs": null, "canon": { "kind": { "name": "Title", "slug": "title", "status": "active", "canonId": "019de52c-f7dd-76d9-b848-b1f12bd85cf4", "version": 1, "description": "Slide title or headline." }, "tool": null, "subkind": { "name": "Headline", "slug": "headline", "status": "active", "canonId": "019de52c-fae1-7463-9a7c-d60668eced0d", "version": 1, "description": null }, "framework": null }, "subkind": "headline", "groupRole": null, "confidence": null, "extraction": { "at": "2026-05-02 14:31:11.972+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "componentId": "9822caac-330c-4126-8a09-6fc953f92508", "parentComponentId": null } ], "metrics": [], "tools": [ { "tool": { "name": "Valuation: DCF", "slug": "dcf", "status": "active", "bestFor": null, "canonId": "019df269-2031-7273-9014-0c70beb91e11", "version": 1, "bodyDocId": "019df269-200e-76ea-8883-6ee35d39c836", "description": "You project free cash flows over an explicit forecast period (typically", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "2d559a68-7f35-4f88-ab9e-539dc2c3b58c", "evidence": "Example Weighted Average Cost of Capital Calculation", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.9, "extraction": { "at": "2026-07-16 23:19:28.836433+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 36, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null }, { "tool": { "name": "Valuation: LBO math", "slug": "lbo-math", "status": "active", "bestFor": null, "canonId": "019df269-212c-732d-a38c-b9513acf723c", "version": 1, "bodyDocId": "019df269-2109-77fd-9ee6-fbbecf40d439", "description": "You model the target as if a private equity buyer were acquiring it,", "familyLabel": "valuation-move", "categoryName": "Analysis", "categorySlug": "analysis" }, "agent": "architect", "layer": "slide", "agents": [ "architect" ], "matchId": "0f29801e-8775-4cb5-820d-7400707baf6f", "evidence": "WACC calculation steps showing cost of equity and after-tax cost of debt", "pageRefs": null, "priority": null, "whenToUse": null, "confidence": 0.7, "extraction": { "at": "2026-07-16 23:19:28.793182+00", "model": "or:meta-llama/llama-4-scout", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 36, "whyItWorks": null, "antipattern": null, "cardinality": null, "narrativePurpose": null } ], "frameworks": [ { "matchId": "d64fbac3-b5b1-41ab-bb2a-d3479ecbb036", "evidence": "Explicitly titled WACC calculation and sensitivity analysis.", "framework": null, "confidence": 1, "extraction": { "at": "2026-05-02 14:31:11.972+00", "model": "google/gemini-3.1-flash-lite-preview-20260303", "runId": null, "seconds": null, "promptVersion": null }, "pageNumber": 36, "frameworkName": "WACC" } ], "arcBeats": [ { "to": 36, "arc": { "name": "The Consultant's Gambit", "slug": "consultants-gambit", "status": "active", "bestFor": "Business cases, project proposals, strategic recommendations", "canonId": "019dd956-5e0a-73c8-b305-81c38c959e9c", "version": 1, "bodyDocId": "019df22a-2356-73eb-8061-d8c81dc0aa49", "structure": "Situation & Context -> Problem & Complication -> Solution & Approach -> Evidence & Proof -> Impact & Next Steps", "description": null, "familyLabel": null }, "from": 25, "name": "Impact & Next Steps", "beatId": "b469779c-88a0-43b8-af3d-b8dac2f148a3", "matchId": "224467b7-bbb4-4629-9a97-7a0ad45eec27", "beatType": { "name": "Impact & Next Steps", "slug": "consultants-gambit-impact-next-steps", "status": "active", "canonId": "019dd9b8-0849-7728-9ee9-fd1609c4c655", "version": 1, "description": null }, "evidence": "The document concludes with examples of DCF analysis and a weighted average cost of capital calculation, illustrating the impact and next steps.", "position": 3, "isPrimaryArc": true, "parentBeatType": { "name": "Resolution", "slug": "resolution", "status": "active", "canonId": "019dd9b8-045d-703b-8dd7-e92aba3ba91b", "version": 1, "description": "How the deck ends. Required in 19/20 arcs. The exception (Sparkline) ends with new bliss which is functionally a resolution." }, "alignedBlockIds": null, "matchConfidence": 0.8 } ], "loops": [], "locked": true } ], "arcBeats": [ { "from": 1, "to": 4, "label": "Situation & Context", "description": "The document starts with an appendix on methodology and a table of contents, setting the context for the DCF analysis." }, { "from": 5, "to": 10, "label": "Problem & Complication", "description": "The document then delves into the advantages and disadvantages of DCF and cash flow projections, addressing potential complications." }, { "from": 11, "to": 24, "label": "Evidence & Proof", "description": "The document provides detailed methodologies for calculating the discount rate, cost of equity capital, and equity beta, serving as evidence and proof for the DCF analysis." }, { "from": 25, "to": 36, "label": "Impact & Next Steps", "description": "The document concludes with examples of DCF analysis and a weighted average cost of capital calculation, illustrating the impact and next steps." } ], "loops": [ { "from": 11, "to": 15, "label": "Mece Breakdown", "description": "To break down the components of cost of capital" }, { "from": 24, "to": 28, "label": "Hypothesis Test", "description": "To test the hypothesis of DCF valuation" } ] }