🚀 DCF Stock Valuation Calculator - Quick Start Guide

What Is This?

A beautiful web application that calculates the fair value of any stock using Discounted Cash Flow (DCF) analysis. Just type in a company ticker, and it instantly tells you if the stock is undervalued or overvalued!

How to Use

Step 1: Start the Server

Open a terminal in the DCF folder and run:

python app.py

The server will start at http://localhost:5000

Step 2: Open the Web App

The app should automatically open in your browser. If not, go to: http://localhost:5000

Step 3: Calculate Fair Value

1. Type a company ticker (e.g., AAPL, MSFT, GOOGL, TSLA)
2. Click "Calculate Fair Value" or press Enter
3. See the results!

What You'll See

📊 Valuation Verdict

• Recommendation: Strong Buy, Buy, Hold, Sell, or Strong Sell
• Upside/Downside: Percentage difference between fair value and current price

💰 Key Metrics

• Fair Value: Calculated price per share (DCF method)
• Current Price: Current market price
• Enterprise Value: Total company value
• Market Cap: Current market capitalization

📋 Calculation Parameters

Click "View Calculation Parameters" to see:

• Revenue (TTM)
• Growth rates (Years 1-5 and 6-10)
• Terminal growth rate
• WACC (Discount rate)
• FCF Margin

How It Works

1. Fetches Data: Gets financial data from Yahoo Finance API
2. Applies DCF Formula: Uses your Excel DCF model formulas
3. Calculates Fair Value: Projects 10 years of cash flows + terminal value
4. Shows Recommendation: Compares fair value vs market price

Customization

The app uses analyst-based growth assumptions by default:

• Gets analyst growth estimates from Yahoo Finance
• Calculates WACC based on company beta
• Uses industry-standard FCF margins

Examples to Try

• AAPL - Apple Inc.
• MSFT - Microsoft
• GOOGL - Google (Alphabet)
• TSLA - Tesla
• AMZN - Amazon
• META - Meta (Facebook)

Stopping the Server

Press Ctrl+C in the terminal to stop the server.

Files Created

• dcf_calculator.html - Web interface
• app.py - Flask backend server
• dcf_engine.py - DCF calculation logic
• HOW_TO_USE.md - This guide

Troubleshooting

Problem: Server won't start

• Solution: Make sure Flask is installed: pip install flask flask-cors

Problem: Can't fetch company data

• Solution: Check your internet connection and verify the ticker symbol is correct

Problem: Calculation error

• Solution: Some companies may not have complete financial data available

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Enjoy calculating fair stock values! 📈