AI Blocks › Handle money and investing
Work out what a business is worth, and how big a discount makes the price safe
Give it a business, its figures and a price. Get a value range, a bad-year test and a discount verdict.
Value a business and the discount to ask for is a free AI workflow for the job "Handle money and investing". It guides your AI through several skills in order, passing each step's output to the next.
Free · No account · Made by AI Blocks · Level: advanced · Thinking: high
What it does
A price tells you what someone will pay today. It does not tell you what the business is worth. The gap between the two is where you either have room for error or you do not. This workflow builds the value first and the price check second. It starts by asking whether you are valuing a business or betting on a price move. It then turns the accounts into owner earnings, the cash an owner could really take out. From those it builds a floor value that assumes no growth, plus low, middle and high growth cases, each saying what has to be true. A bad-year test follows: how big a loss can one year bring before the business stops earning, and does it survive? Last, the price goes against the range and the result is a verdict on whether the discount is big enough, too small, or the business…
You give it
- The business in a few lines, and the price or stake value you are weighing
- Four or five years of profit, depreciation, capital spending and working capital
- The yield on a long-term government bond today (optional)
You get
- A label of investment or speculation, with the questions a careful buyer asks
- Owner earnings as a low, middle and high figure
- A no-growth floor value and three growth values, each with what it needs to be true
- A rate check showing how much the answer leans on the rate
- A bad-year break-even test with a survival check
- A verdict on the discount, with what would make the estimate wrong
Use it when
- You have a price for a business or a share of one and want to know what it is worth next to it.
- A business passed your tests and now needs a value.
- You want to see what growth a price asks you to believe.
Steps
- Investment or speculation sorter: Paste a purchase you are weighing and why. Get it sorted as investment or speculation, with the questions a careful buyer asks.
- Owner earnings calculator: Paste a company's profit, depreciation and spending. Get the cash an owner could take out each year, as a range.
- Business value range calculator: Paste a business's owner earnings. Get a no-growth floor value and low, middle and high growth values, with what each assumes.
- Bad-year break-even tester: Paste a business and its worst risks. Get how big a loss one year can bring before it stops earning.
- Investment margin of safety review: Paste your value range, asset floor and the price. Get whether there is a real margin of safety and what removes it.
How to use it
- Download the handoff pack. It's a zip with HANDOFF.md and every skill file this workflow uses.
- Give the folder to Claude (in Claude Code, or as files in a Claude Project) and say "Follow HANDOFF.md".
- Describe the business and the price, then paste or attach the figures.
- Give today's long-term bond yield if you have it. Read the floor first, then the three cases.
- Check the bad-year test against what has happened in the field before you trust the verdict.