Usage

There are a few important classes which will help you build your DCF. The Company class encapsulates three classes: BalanceSheet, CashFlows, and IncomeStatement. Once a Company object is created using the 3 financial statements, this can be passed to one of the DCF models (currently either SimpleDCF or DCF).

In [1]: from autodcf.company import BalanceSheet, CashFlows, Company, IncomeStatement

In [2]: from autodcf.models import SimpleDCF

In [3]: balance_sheet = BalanceSheet(cash=10,
   ...:                              short_term_investments=5,
   ...:                              net_receivables=10,
   ...:                              inventory=5,
   ...:                              other_current_assets=5,
   ...:                              ppe=30,
   ...:                              goodwill=10,
   ...:                              intangible_assets=20,
   ...:                              other_lt_assets=0,
   ...:                              accounts_payable=5,
   ...:                              accrued_liabilities=9,
   ...:                              short_term_debt=6,
   ...:                              current_part_lt_debt=4,
   ...:                              long_term_debt=14,
   ...:                              other_current_liabilities=2,
   ...:                              other_lt_liabilities=2,
   ...:                              deferred_lt_liabilities=3,
   ...:                              minority_interest=5)
   ...: 

In [4]: cash_flows = CashFlows(capex=3)

In [5]: income_statement = IncomeStatement(sales=100,
   ...:                                    cogs=50,
   ...:                                    sga=25,
   ...:                                    rd=0,
   ...:                                    depreciation=4,
   ...:                                    amortization=2,
   ...:                                    interest=0,
   ...:                                    nonrecurring_cost=3,
   ...:                                    tax=4)
   ...: 

In [6]: company = Company(balance_sheet=balance_sheet,
   ...:                   cash_flows=cash_flows,
   ...:                   income_statement=income_statement,
   ...:                   price_per_share=2.00,
   ...:                   fully_diluted_shares=100)
   ...: 

In [7]: simple_dcf = SimpleDCF(change_in_nwc_to_change_in_sales=0.1,
   ...:                        company=company,
   ...:                        discount_rate=0.14,
   ...:                        sales_growth=0.03,
   ...:                        tax_rate=0.21,
   ...:                        terminal_growth_rate=0.03,
   ...:                        window=5)
   ...: 

In [8]: forecast = simple_dcf.forecast()

In [9]: forecast
Out[9]: 
    Year       Sales       COGS  ...  Change in NWC        FCF  Discounted FCF
-1  2019  100.000000  50.000000  ...       0.000000  18.000000             NaN
 0  2020  103.000000  51.500000  ...       0.300000  18.250300       18.250300
 1  2021  106.090000  53.045000  ...       0.309000  18.797809       16.489306
 2  2022  109.272700  54.636350  ...       0.318270  19.361743       14.898233
 3  2023  112.550881  56.275441  ...       0.327818  19.942596       13.460684
 4  2024  115.927407  57.963704  ...       0.337653  20.540873       12.161846
 5  2025  119.405230  59.702615  ...       0.347782  21.157100       10.988335

[7 rows x 18 columns]

In [10]: round(simple_dcf.enterprise_value, 2)
Out[10]: 87.810000000000002

In [11]: round(simple_dcf.equity_value, 2)
Out[11]: 82.810000000000002