kyungphillee/kyungphilleestockvaluator

Stock Valuator: DCF Analysis and Trading Signals

Table of Contents

1. Introduction
2. Features
3. Installation
4. Usage
5. API Endpoints
6. Code Overview
7. Contributing
8. License

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Introduction

This stock valuator is a Python web application that uses Flask to offer an API endpoint for Discounted Cash Flow (DCF) analysis. The application evaluates a given stock ticker to determine whether it's overvalued, undervalued, or fairly valued based on financial data fetched from Yahoo Finance.

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Features

• DCF Analysis: Performs DCF analysis using data like risk-free rate, cost of equity, and free cash flows.
• WACC Calculation: Computes the Weighted Average Cost of Capital.
• Terminal Value: Estimates the terminal value of the stock.
• Trade Signal: Provides trading signals based on the DCF evaluation (Buy, Sell, or Hold).
• Flask API: Offers a RESTful API endpoint to fetch valuation.
• Web Interface: Simple web front-end for user input and output display.

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Installation

1. Clone the Repository

   git clone https://github.com/kyungphillee/kyungphilleestockvaluator.git

2. Install Required Packages

   pip install -r requirements.txt

3. Run the Application

   python app.py

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Usage

• Web Interface: Navigate to http://127.0.0.1:5000/ and enter the stock ticker. Click on "Get Valuation" to see the result.
• API Endpoint: To get the valuation of a stock ticker, use the API endpoint /api/valuation?ticker=<ticker>.

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API Endpoints

Endpoint	Description
GET /api/valuation	Returns the valuation of a stock

Example:

GET /api/valuation?ticker=AAPL

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Code Overview

• fetch_stock_data: Fetches necessary stock data from Yahoo Finance.
• discount_rate: Calculates the discount rate based on equity, debt, and taxes.
• cost_of_equity: Computes the cost of equity.
• get_FCF: Gets the Free Cash Flow for the stock.
• Terminal_Value: Calculates the Terminal Value.
• DCF: Main function that performs the DCF analysis.
• trade: Provides a trade recommendation based on the valuation.

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License

This project is licensed under the MIT License - see the LICENSE.md file for details.

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For more details on the implementation and potential improvements, refer to inline comments in the code. Pull requests are welcome.

Disclaimer: This application is for educational purposes only. Please do your own due diligence before making any investment decisions.